On the 23 September 2022 the Chancellor of the Exchequer Kwasi Kwarteng revealed his Mini Budget announcing that he is making changes to support the “Growth Plan”, as described by the government, during a time of soaring inflation, rising interest rates and a cost of living crisis that is at it’s highest for over 40 years.
The Growth Plan sets out a new approach to the economy built around three central priorities: reforming the supply-side of the economy, maintaining a responsible approach to public finances and cutting taxes to boost growth.
We are delighted to release this guide outlining the key announcements from the mini budget. This is now available here. We hope the summary will provide you with a useful updates and allow you to get to grips with the changes.
Mini budget highlights include:
- The National Insurance 1.25% point rise has been reversed from 6 November 2022
- Basic rate of income tax reduced to 19 pence per pound from April 2023
- The abolition of top rate of income tax of 45% from 6 April 2023 and the replacement of a single rate of higher rate tax of 40%
- Gift aid relief will have a four year transition period and the income tax basic rate relief of 20% will be maintained until April 2027
- Corporation tax will remain at 19%, with planned increases cancelled
- SEIS investment raised to up to £250,000 with gross asset limit increased to £350,000
- Government announcing proposed investment zones in 38 local areas in England to encourage business investments
- Stamp duty cut – stamp duty will not be paid on the first £250,000 of a property and the threshold for first time buyers will increase from £300,000 to £425,000, with a maximum cap to those eligible for First Time Buyer’s Relief pay, now increased to £625,000
- IR35 repeal of the off-payroll working rules effective from 6 April 2023
- Reductions in benefits for people who don’t meet the tightening Universal Credit job search requirements.
- Bankers “bonus” cap scrapped
- One year transitional period for Relief at Source pension schemes permitting them to continue claiming 20% tax relief
- From April 2023 dividend ordinary rate will be reduced to 7.5%, with the upper rate reducing to 32.5% and the additional rate to be abolished.
- Planning restrictions legislation to be announced to accelerate new roads, rail and energy infrastructure
- VAT Free shopping scheme for Non-UK visitors introduced to boost the UK high streets and create jobs in retail and tourism
- Alcohol tax duties frozen from 1 February 2023
- The previously announced Energy Bill Scheme introduced on 21 September 2022 is to cut energy prices for non-domestic energy customers, in addition to the announcement of the Energy Price Guarantee (EPG) capping the unit cost of energy for households
To find out more about the latest mini-budget benefits and announcements, download the mini budget guide by clicking the link below.
Get in touch
If you have any questions relating to any of the announcements covered in this summary and how they may impact you and your business, please do not hesitate to contact us by completing the form below or get in touch with one of our tax experts.
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