MINI BUDGET. MASSIVE CHANGES. 17 OCT 2022.
A week’s a long time in politics. For those trying to make meaningful business decisions, you better believe it.
Just over three weeks on from setting a new course for growth, the government has backtracked on pretty much everything in the Mini Budget.
“Dear, Oh Dear” as King Charles was heard to say to Liz Truss.
Jeremy Hunt, our fourth Chancellor since July, stated that “we will reverse almost all the tax measures.” In fact, a total of £32 billion of tax changes have been reversed. This unprecedented trashing of government policy is designed to offer market stability. And set a new course. Only time will tell.
A more detailed statement is expected soon, but this is what’s being scrapped and what’s being kept (for now).
SCRAPPED:
- Cancelling Corporation Tax rise from 19% to 25%
- Income Tax removal of 45% top rate (ditched a fortnight ago)
- Income Tax basic rate cut from 20p to 19p
- Dividend tax cut of 1.25% (scheduled for April 23)
- IR35 Reforms
- Freezing rates of alcohol duty
- VAT free shopping for non-UK visitors
- Energy price cap now only guaranteed until next April, not 2 years.
RETAINED:
- Reversing 1.25% National Insurance rise
- No stamp duty on first £250k of property’ value
- No duty on first £425K of property for first-time buyers.
Watch this space for the next twists and turns.
MINI BUDGET UDATE: 03 OCT 2022
Well, Kwasi Kwarteng did say there was ‘more to come.’ Just over a week after his Mini Budget, he has now abandoned plans to abolish the 45p top rate of income tax for those earning over £150,000 a year.
It appears it has become a ‘distraction’ from the government’s economic growth plans.
We await to see what else might be introduced/changed down the line.
On Friday 23 September, the Chancellor Kwasi Kwarteng introduced the biggest package of tax cuts for 50 years.
But what do these significant changes mean to you and your business?
In this Cooper Parry review, we bring maximum insight into the Mini Budget (actually, not so Mini after all).
Oh, and Mr Kwarteng has strongly hinted that there is ‘more to come’.
Discover what we know already and click here.
