Mini-Budget Statement: September 2022
Chancellor Kwasi Kwarteng’s announced the details of his Emergency Budget Statement today. In helping businesses and individuals tackle increased costs, significant reductions in tax were included.
The key points within today’s mini-budget are:
Tax & National Insurance
- The basic rate of income tax will be cut from 20p to 19p from April 2023. This cut is expected to benefit more than 31 million people.
- The UK’s 45% highest tax band for people who earn more than £150,000 per year has been abolished. This will now be 40% from April 2023.
- The planned increase in corporation tax has been cancelled and will remain at 19%.
- National Insurance increases have been cancelled for 28 million people and one million businesses, and the Health and Social Care Levy, this will be from 6 November 2022.
Stamp Duty
From today the Stamp Duty free threshold has been raised from £125,000 to £250,000, (£425,000 for
first-time buyers). The rates are now:
- 0%: £0 – £250,000 (£425,000 for first-time buyers)
- 5%: £250,000 – £925,000
- 10%: £925,000 – £1,500,000
- 12%: £1,500,000+
Energy
- There is a now a limit on household energy bills to £2,500 per annum.
- The Government will subsidise wholesale energy prices for businesses and will provide a guaranteed equivalent to that on households.
Work & Investment
- IR35 rules – the rules which govern off-payroll working – to be simplified.
- Annual investment allowance, the amount companies can invest tax free, remains at £1m indefinitely.
- Regulations change so pensions funds can increase UK investments.
- New and start-up companies able to raise up to £250,000 under scheme giving tax relief to investors.
- Share options for employees doubled from £30,000 to £60,000.
Shopping
- VAT-free shopping for overseas visitors.
- Planned increases in the duties on beer, for cider, for wine, and for spirits cancelled.
Infrastructure & Investment Zones
- Tax cuts and liberalised planning rules to be offered to release land for housing and commercial use.
- Investment zones offered measures such as no business rates and stamp duty waived.
- New legislation to cut planning rules, get rid of EU regulations and environmental assessments in an effort to speed up building.
- Government discussing setting up investment zones with 38 local areas in England.
How does this mini-budget affect you or your business? If you have any queries, please contact us.