Mini Budget September 2022
Back to NewsIn his first Budget speech as Chancellor, Kwasi Kwarteng said that ‘we need a new approach for a new era, focused on growth’. He would build this around three priorities: reforming the supply side of the economy, maintaining a responsible approach to public finances, and cutting taxes to boost growth. What followed certainly delivered on the third of these: this package has been described as the biggest tax cutting budget for half a century.
The key budget points are highlighted below and in more detail in our budget booklet on our website.
Key points
- Income Tax - Additional Rate of Income Tax, which is currently 45 per cent on income over £150,000 will be scrapped entirely.
- Basic rate of Income Tax - Bring forward the cut in the Basic Rate of Income Tax to 19 per cent planned for April 2024 to April 2023.
- NIC and Health and Social Care Levy – The charge will be scrapped and will no longer apply from 6 November 2022. The move also scraps the planned increase in Dividend Tax, which were due in April 2023.
- IR35 - The reforms to the IR35 off-payroll working rules in 2017 and 2021 for individual contractors operating via personal service companies in the public and private sectors respectively would be scrapped.
- Corporation Tax - The planned increase will no longer go ahead and Corporation Tax rates will remain at 19 per cent.
- Annual Investment Allowance (AIA) - The AIA would not fall back to £200,000 in 2023 but would instead remain at its current £1 million level permanently.
- Energy Bills - Confirmation of energy cost support packages
If you would like to discuss any of the points raised above please contact the partner or a member of the LH Team.
