Mini Budget Update

The Chancellor, Kwasi Kwarteng, has outlined a series of tax cuts and other measures in this
morning’s “fiscal statement” in what is a significant shake-up of the UK’s finances. A summary of the
key changes is as follows;
• Confirmation of the abolition of the previous 1.25% increase in National Insurance for both
employers and employees with effect from 6 November 2022, announced yesterday.
• A similar reversal of the 1.25% increase in income tax on dividend income, with effect
from 6 April 2023.
• The basic rate of income tax will reduced from 20% to 19%, from 6 April 2023.
• The additional rate of income tax of 45% applicable to income over £150,000 will be
abolished entirely, from 6 April 2023.
• The cap on bankers’ bonuses has been lifted in an attempt to encourage overseas
investment.
• The stamp duty threshold will be doubled from £125,000 to £250,000, with immediate
effect. The threshold for first-time buyers will increase from £300,000 to £425,000.
• Reforms to legislation introduced in relation to “off-payroll” workers are to be repealed in
an attempt to simplify matters.
• The proposed increase in corporation tax rates from 19% to 25%, from April 2023, will be
abolished.
• The “Annual Investment Allowance” threshold applicable to businesses investing in plant
and machinery will remain at £1 million, rather than being reduced to £200,000.
Please get in touch if you would like further information on any of the above matters.