Dear oh dear, what a few weeks it’s been since the “mini budget” on 23 September 2022. I thought it might be useful to provide an update of the U turns of the announcements. Here we go:
- The chancellor confirmed the abolition from 6 November 2022 of the recent National Insurance increase, along with the Health and Social Care Levy that was due to take effect from 6 April 2023. These measures, the government say, will save nearly 28 million people an average of £330 per year.
- The basic rate of Income Tax will reduce from 20% to 19% from 6 April 2023, a year earlier than planned. – SCRAPPED
- The additional Income Tax rate of 45% on taxable income over £150000 will be abolished and revert to the higher rate tax rate of 40%. – SCRAPPED
- Dividend tax rates will reduce by 1.25% from 6 April 2023 to 7.5% / 32.5% / 38.1% depending on taxable income – SCRAPPED
- The planned Corporation Tax rise to 25% from 1 April 2023 has been scrapped and the rate will remain at 19%. – SCRAPPED
- The proposed reduction in the amount that a business can get tax relief on plant and machinery purchases has been shelved. Businesses will be able to spend up to £1 million per annum and obtain full tax relief.
- IR35 regulations relating to “off payroll working” which were introduced in 2017 and 2021 are to be scrapped from April 2023. – SCRAPPED
- Stamp Duty Land Tax will not be payable on the first £250000 of a property purchase and relief for first time buyers increases to £425000. The changes are effective from today.
- The planned VAT rate increases for beer, cider, wine and spirits will all be cancelled. – SCRAPPED
Watch this space. Who knows what’s going to happen in the weeks to come.
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