Jeremy Hunt to unveil tax reforms to encourage investment in UK as he battles Tory rebellion

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The Chancellor is also due to confirm a multi-billion-pound boost to military spending as the Prime Minister prepares to unveil a new defence and foreign policy strategy

The Chancellor will confirm in next week’s Budget that

The decision to raise the rate of corporation tax, after years in which it was repeatedly lowered, was first taken by Rishi Sunak in 2021 when he was still Chancellor.to abandon the policy weeks before it is due to take effect, but he has decided to go ahead after being told that freezing the rate would cost £18bn because its rise is already baked in to future fiscal forecasts.

The so-called “super deduction”, which allowed firms to write off 130 per cent of their capital investments, will expire shortly and the Treasury has not yet revealed what will replace it. The Treasury is expected to reject plans to let companies write off the full value of their investments, a policy known as “full expensing”, and is instead considered likely to push for more targeted schemes.

 

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