The new Chancellor of the Exchequer Kwasi Kwarteng has announced his mini-Budget on 23rd September 2022
Income tax
- Cut in basic rate of income tax to 19% from April 2023
- 45% higher rate of income tax abolished for England, Wales and Northern Ireland taxpayers
- One single higher rate of income tax of 40% from April next year
- Income Tax on dividends will remain at 7.5%/32.5%
National Insurance
- Reverse recent rise in National Insurance (NI) from 6 November
- New Health and Social Care Levy to pay for the NHS will not be introduced
Corporation tax
- Cancel corporation tax rise which was due to increase from 19% to 25% in April 2023
Other Benefits
- Rules around universal credit tightened, by reducing benefits if people don’t fulfil job search commitments
- IR35 rules – the rules which govern off-payroll working – to be simplified
- Annual investment allowance, the amount companies can invest tax free, remains at £1m indefinitely
- New and start-up companies able to raise up to £250,000 under scheme giving tax relief to investors
- Share options for employees doubled from £30,000 to £60,000
- No stamp duty on first £250,000 and for first time buyers that rises to £425,000 – comes into operation today
- Freeze on energy bills
- VAT-free shopping for overseas visitors
- Planned increases in the duties on beer, for cider, for wine, and for spirits cancelled
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