# 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.”
>
> — Labour Party; 2024 manifesto, page 31, 13 June 2024

- **Status:** Legislated
- **Status ladder:** Promised → In plan → Legislated → Funded → Delivering → Delivered
- **Policy area:** [Taxes](https://ledgergov.uk/promises/area/taxes)
- **Speaker:** [Labour Party](https://ledgergov.uk/actor/labour)
- **Made on:** 13 June 2024
- **Where:** 2024 manifesto, page 31
- **Deadline:** 1 July 2029
- **Cost a year:** No costing published
- **Who it affects:** Companies that pay the main rate of corporation tax
- **When:** For the whole Parliament (taken as to 1 July 2029)
- **Paid for by:** Not stated when it was announced
- **Quote source:** https://labour.org.uk/wp-content/uploads/2024/06/Labour-Party-manifesto-2024.pdf#page=31 (checked word for word on 6 October 2026; Quoted for reporting; rights stay with the publisher)
- **Last updated:** 6 October 2026
- **Card:** https://ledgergov.uk/promise/uk-corp-tax-cap-25-2024

## 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.

## Timeline

- 13 June 2024, Promised: Labour manifesto pledges to cap corporation tax at 25% for the whole Parliament
- 30 October 2024, In plan: Corporate Tax Roadmap commits to capping the main rate of corporation tax at 25% for the Parliament ([evidence](https://www.gov.uk/government/publications/corporate-tax-roadmap-2024))
- 20 March 2025, Legislated: Finance Act 2025 sets the main rate at 25% for the financial year 2026 ([evidence](https://www.legislation.gov.uk/ukpga/2025/8/section/13/enacted))
- 18 March 2026, Legislated: Finance Act 2026 sets the main rate at 25% for the financial year 2027 ([evidence](https://www.legislation.gov.uk/ukpga/2026/11/section/11/enacted))
- 1 July 2029, Deadline (to come): End of the Parliament (editorial date)

## 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.

Costing sources:
- [Labour Party: Change, 2024 manifesto (PDF), fiscal plan, page 126](https://labour.org.uk/wp-content/uploads/2024/06/Labour-Party-manifesto-2024.pdf#page=126)

## Sources

- [Labour Party: Change, 2024 manifesto (PDF), page 31](https://labour.org.uk/wp-content/uploads/2024/06/Labour-Party-manifesto-2024.pdf#page=31)
- [HM Treasury: Corporate Tax Roadmap 2024 (30 Oct 2024)](https://www.gov.uk/government/publications/corporate-tax-roadmap-2024)
- [Finance Act 2025, section 13: main rate for financial year 2026](https://www.legislation.gov.uk/ukpga/2025/8/section/13/enacted)
- [Finance Act 2026, section 11: main rate for financial year 2027](https://www.legislation.gov.uk/ukpga/2026/11/section/11/enacted)
- [HM Treasury: Budget 2025 (26 Nov 2025)](https://assets.publishing.service.gov.uk/media/6929b353345e31ab14ecf735/E03444720_Budget_2025_Web_Accessible.pdf)

## Checks

- Checked by AI Journalist (automated) on 6 October 2026; human editor review to come.

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