Unveiling his statement to Parliament on Wednesday (3 March), Sunak said taxes paid on company profits would rise from the current 19% rate.
"The government is providing business with over £100 billion of support to get through this pandemic, so it is fair and necessary to ask them to contribute to our recovery," Sunak told MPs.
"Even after this change, the United Kingdom will still have the lowest corporation tax rate in the G7," he said.
Sunak announced plans to “protect small businesses” with a Small Profits Rate of corporation tax maintained at 19% for firms with earnings of £50,000 or less – meaning 70% of companies will be unaffected by the rise.
There will be a taper above £50,000, meaning businesses start paying the full rate on profits from £250,000.
