The beginning of 2023 has been a less turbulent period in UK politics after a somewhat chaotic end to 2022. The main event from a UK tax perspective was the Chancellor’s Spring Budget, in which he sought to deliver on three key priorities of the Government: grow the economy, reduce inflation and ensure that government debt falls. The impact of the tax measures announced against the backdrop of a difficult economic climate remains to be seen. However, what is clear is that confirmation of the hike in the main rate of corporation tax to 25% (for taxable profits above £250,000) from 1 April 2023 will have a significant impact on many Northern Ireland businesses, given that their competitors based in the Republic of Ireland are subject to a tax rate of only 12.5%.
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