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October 18, 2022

Mini-Budget 2022 Update: What Has Changed?

Following the Mini-Budget 2022, we published a blog about the key highlights.

However, since then Kwasi Kwarteng has been replaced by Jeremy Hunt as Chancellor.

Jeremy Hunt has announced some changes to the plans previously announced by Kwasi Kwarteng and a summary of these is as follows:

  • ‘Cutting the basic rate of income tax down to 19% from April 2023’ has been abandoned until the economic conditions allow for it and the government can afford the change. Therefore, the 20% tax rate remains indefinitely.
  • The ‘removal of 45% additional tax rate for high earners’ has been scrapped. Therefore, the rate of income tax for earnings over £150,000 will remain at 45%.
  • Corporation tax – Cancelling the rise from 19% to 25%’. The rise in corporation tax will go ahead from April 2023 for firms making more than £250,000 profit (around 10% of actively trading companies). Companies making between £50,000 and £250,000 will also face a rise in Corporation Tax, with the rate increasing incrementally from 19% to 25% depending on how much profit a firm is making.
  • The dividend rate increase of 1.25% (introduced in April 2022) will remain in place.
  • The off-payroll working reforms introduced in 2018 and 2021 will now remain in place.
  • The government will not proceed with the VAT free shopping scheme for non-UK visitors.
  • The government will not proceed with freezing the alcohol duty rates.

Notably, the following points announced previously as part of the Mini Budget will remain in place:

  • The National Insurance rise reversal (From November 2022) and the Health and Social Care Levy.
  • The cuts to Stamp Duty Land Tax.
  • Energy support for households also remains in place though only until April 2023.
  • The announcements regarding the Annual Investment Allowance, the SEIS scheme and CSOP plans.

Please see our previous blog for further details of these measures.

Please contact a member of our team if you have any questions on the Mini-Budget.

Disclaimer: This article is for general information only and is not intended to constitute individual advice. It is recommended that you seek independent tax advice with regards to the changes made in the mini-budget.  

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