The rate of corporation tax, paid on company profits, is to rise to 25% from 19%, starting in 2023.
Chancellor Rishi Sunak said it was "fair and necessary" for business to contribute to the economic recovery.
But he also unveiled a "small profits rate" to benefit small firms, and extra tax breaks to spur investment.
Paul Johnson, director of the Institute for Studies, said the rise in the headline rate was at the top end of expectations, calling it "risky".
In case you are keeping track:
Budget 2021: Keir Starmer backs delay in raising corporation tax | Budget 2021 | The Guardian
Keir Starmer has signalled that Labour will back plans to increase corporation tax from 2023, reiterating the party's opposition to immediate tax rises that caused a backlash from the left.
* * *
It is understood that some in the party believe the pre-briefings on tax were a trap for Labour to call for immediate tax rises – which the chancellor would have then insisted on delaying.
The Guardian has seen briefings to Labour MPs before the budget of "lines to take" if asked to do media appearances – which say the party would oppose immediate rises in corporation tax, as well any immediate rise in capital gains tax, which was not in Sunak's budget.
UK Budget 2021: corporation tax to rise but ... announced
Corporate tax expert Eloise Walker of Pinsent Masons, the law firm behind Out-Law, said: "The super-deduction will be welcome, especially in the infrastructure sector, but it is, and is meant to be, a quick injection to help restart the economy, not surgery to reconfigure the UK's business tax landscape".
The super-deduction will not be available for used or second hand assets. It will also not be available for expenditure incurred under a contract entered into prior to 3 March 2021, even if the expenditure is incurred after 1 April 2021.
What's on the small business Budget wish list and what's likely to happen? | This is Money
Millions of Britain's small and medium-sized businesses are awaiting the Budget with anticipation as any announcement could mean help or a serious struggle for survival.
Prime Minister Boris Johnson's 'Roadmap to Recovery' revealed last week will have raised hopes as tentative dates for slowly reopening the economy were given.
However, it is Chancellor Rishi Sunak's Budget, which takes place on Wednesday that will decide how they will - or won't - get there.
Quite a lot has been going on:
Business organisations' Budget reaction | Business Cornwall
The Federation of Small Businesses (FSB) says that while the Budget will help many, more is needed on employment costs
National chairman, Mike Cherry, said: "This Budget will help many small firms with their final push through to September, but there is little here to aid job creation or help people return to work.
"Ensuring the newly self-employed can now access support marks a big step forward – we're pleased to see our campaign has been heard – but directors, who appear to have been left out yet again, will be incredibly disappointed.
Budget Report: Furlough scheme extended and corporation tax will increase to 25% from 2023
Rishi Sunak has revealed the details of his budget with the UK to borrow a peacetime record of £355bn this year. The Chancellor is expecting unemployment to peak at 6.5% in 2022, lower than the 11.9% predicted.
The furlough scheme is to be extended to the end of September and employers will be asked contribute 10% in July and 20% in August and September. And a further 600,000 self-employed people will be eligible for a grant.
And the stamp duty cut will continue until the end of June, no stamp duty will be charged on a residential property bought for up to £500,000. Until September, no stamp duty will be charged on a residential property bought for up to £250,000.
Royal wedding needleworker faces closing business after lack of Budget support -
A woman who embroidered wedding gowns for the Duchess of Sussex and Duchess of Cambridge said she faces winding up her business after failing to qualify for support in Wednesday's Budget.
C hloe Savage, who runs Chloe Savage Embroidery in Bristol, does not qualify for financial support because she is a limited company director and does not count as self-employed.
She told the PA news agency: "We're not going to make profits and even if I can manage to keep going, I am not going to make a profit in three years.
Happening on Twitter
Tory Budget 2021 • 1.3m lowest paid workers will now pay tax • £7.5bn tax hikes on workers' wages • New Autumn fur… https://t.co/86kDf5EN13 ClaudiaWebbe (from Leicester, England) Wed Mar 03 14:03:26 +0000 2021
"The Labour Party seems to have lost confidence in what it is, what it wants and for whom it speaks." This week's… https://t.co/Evhstzfv0g georgeeaton (from London) Tue Mar 02 18:05:25 +0000 2021
The last thing Albertans need in this time of economic uncertainty is new taxes. Budget 2021 contains no new taxes… https://t.co/vK98bhJrha jkenney (from Alberta, Canada) Tue Mar 02 16:56:08 +0000 2021
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