On 23 September 2022, Chancellor Kwasi Kwarteng announced a ‘mini-budget’ in the UK which included cuts for income tax, national insurance, corporate tax, stamp duty land tax and more.
The headline announcements are as follows:
- The basic rate of income tax will be cut by 1% to 19% from April 2023.
- The 45% income tax rate will be abolished, so the top rate of income tax will be 40%, from April 2023.
- The level at which house-buyers begin to pay stamp duty land tax is doubled from £125,000 to £250,000, and will be £425,000 for first-time buyers.
- The planned rise to corporation tax from 19% to 25% has been scrapped.
- The 1.25% rise in National Insurance will be reversed from 6 November 2022.
- More than 40 new investment zones in England with relaxed planning rules and reduced business taxes will be introduced.
- VAT-free shopping for overseas visitors.
There are also various duty cuts, the cap on bankers’ bonuses being lifted and other proposed changes.
If you want any more information on any of the above, please get in touch with your usual contact or the details below.
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