Today Chancellor Kwasi Kwarteng announced a series of tax cuts and economic measures. While mini-budget by name, it certainly was not mini-budget by nature, so here is our summary of a few of the key changes that will impact you…
Income Tax
The Chancellor has abolished additional rate income tax and will reduce the basic rate from 20% to 19% from April 2023. From next year, the UK will have a single higher rate of income tax of 40% with the highest rate of 45% scrapped.
National Insurance
The national insurance hike that came into effect from April has will now be reversed from 6th November. The Chancellor said this would save workers on average £330 per year.
Stamp Duty
Stamp duty has been scrapped from today on property purchases up to £250,000.00, doubling from the current level of £125,000.00. For first time buyers, this figure will rise to £425,000.00 from £300,000.00.
Corporation Tax
In April 2023, corporation tax was due to increase from 19% to 25%, however, Mr Kwarteng has reversed this decision. With the lowest rate of corporation tax in the G20, this is set to plough almost £19 billion a year back into the economy.
If you want to find out more about any of these or any other policy changes, please get in touch with your adviser.
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