The government has announced that banks will continue to pay a higher combined rate of corporation tax from April 2023. The following is an extract from the HM Treasury document CP751, entitled Autumn Statement 2022 (para. 5.27), with paragraph spacing added for greater clarity:
“Following the decision to proceed with the Corporation Tax rate increase to 25% from April 2023, the changes to the Bank Corporation Tax Surcharge which are legislated to take effect from the same point will also go ahead.
This means that from April 2023, banks will be charged an additional 3% rate on their profits above £100 million – meaning that they will continue to pay a higher combined rate of corporation tax than most other companies, and a higher rate than they did previously.”