In today’s Mini-Budget, the Chancellor has announced a cut to the higher rate of income tax, a stamp duty reduction and a reversal on the corporation tax hike.
Key announcements included:
- A 1% cut in income tax to 19% from April 2023.
- The 45% income tax top rate to be abolished and replaced with a single top rate of 40% from April 2023.
- No Stamp Duty on the first £250,000 and for first time buyers that rises to £425,000. This comes into effect today.
- The planned increase in corporation tax has been cancelled and will remain at 19%.
- The cap on bankers’ bonuses with be scrapped and replaced with regulatory reform.
- Reversal of the 1.25% increase in National Insurance for employees, employers and the self employed from 6 November 2022.
- From April 2023 a reversal of the 1.25% increase to the rate of income tax on dividends which took effect in April 2022.
- The new Health & Social Care Levy to pay for the NHS will not be introduced.
- The planned duty rates increase on beer, wine and spirits is cancelled.
- Reform to the pension charge cap.
- The Annual Investment Allowance has been permanently set at the £1 million level rather than reverting back to £200,000.
- The Energy Price Guarantee will cap the unit price that consumers pay for electricity and gas, limiting the average household bill to £2,500.
The details, as well as relevant implications, are of course very important to understand. If you have any questions regarding the Mini-Budget, please get in touch: email@example.com.