Cap corporation tax at 25%
“Labour will cap corporation tax at the current level of 25 per cent, the lowest in the G7, for the entire parliament, and we will act if tax changes in other countries pose a risk to UK competitiveness.”
- Legislated
Where it stands
The Corporate Tax Roadmap (October 2024) commits to the 25% cap for the Parliament, and Finance Acts have set the main rate at 25% for the financial years starting April 2026 and April 2027. Later years are not yet set in law, so the card sits at Legislated until the end of the Parliament, taken as 1 July 2029.
What has happened
- Jun 2024Labour manifesto pledges to cap corporation tax at 25% for the whole Parliament, Promised
- Oct 2024Corporate Tax Roadmap commits to capping the main rate of corporation tax at 25% for the Parliament, In plan evidence
- Mar 2025Finance Act 2025 sets the main rate at 25% for the financial year 2026, Legislated evidence
- Mar 2026Finance Act 2026 sets the main rate at 25% for the financial year 2027, Legislated evidence
- Jul 2029End of the Parliament (editorial date), Deadline
About the cost
Keeping the rate at its current level has no direct cost against existing plans, and no official costing of the pledge exists. Labour's fiscal plan says policies not listed in its costings are funded from existing budgets or have no cost.
More detail
Sources (5)
How cards are checked
Status follows the promise standard, the same for every party. A status changes only on evidence. Anyone named on a card can reply, and replies are published next to it. AI Journalist is our automated reviewer: it re-reads every card against its live sources (the quote word for word, dates, evidence, status, cost, neutral wording, legal risk). Human editors review next.
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