Lee Sharpe considers what the personal tax freeze and the Corporation Tax hike mean, for people who are considering incorporating their trading businesses (or not).
The Chancellor delivered a Budget he described as “unpopular but honest” on 3 March 2021. In broad terms that might be considered a fair assessment, although it will not have taken long for veteran advisers to realise that, far from a novel approach, there was much that basically reversed a good deal of what his recent predecessors had been trying to do since the 2010 Emergency Budget (which, if one recalls, set out to deal with the last “once-in-a-generation” global financial crisis).
This article will concentrate on one of the key announcements in the Budget, being the (re)introduction of a higher main rate of Corporation Tax of 25%, for profits deemed to arise from 1 April 2023. This has been