On Friday morning, Chancellor Kwasi Kwarteng unveiled his growth plans for 2022 in what he claimed to be the biggest tax cuts of this generation. We have summarized the key points of the Mini-budget below, but if you’re looking for a more in-depth guide, you can download our Mini Budget 2022 Guide here.
Income tax
- There will be a cut in the basic rate of income tax to 19% from April 2023.
- The 45% higher rate of income tax will be abolished for England, Wales and Northern Ireland taxpayers.
- There will only be one single higher rate of income tax of 40% from April next year.
National Insurance
- Reversal of the National Insurance Increase as of 6th November.
Corporation tax
- Corporation tax that was due to increase from 19% to 25% in April 2023 has now been cancelled.
Work and investment
- IR35 rules, the rules which govern off-payroll working, are to be simplified.
- The annual investment allowance, the amount companies can invest tax free, remains at £1m indefinitely.
- Regulations change so pension funds can increase UK investments.
- New and start-up companies are able to raise up to £250,000 under a scheme giving tax relief to investors.
- Share options for employees doubled from £30,000 to £60,000.
Stamp duty
- No stamp duty to be paid on the first £250,000.
- No stamp duty to be paid on the first £425,000 for first-time buyers effective immediately.
Energy
- Freeze on energy bills, which the government claims will reduce inflation by 5%.
Shopping
- VAT-free shopping for overseas visitors.
- Planned increases in the duties on beer, cider, wine, and spirits have been cancelled.
Infrastructure and investment zones
- The government is discussing setting up investment zones in 38 local areas in England.
- Tax cuts and liberalised planning rules are to be offered to release land for housing and commercial use.
- Investment zones offer measures such as no business rates and stamp duty waived.
You can download our Mini Budget 2022 Guide here. If you do have any questions and would like to speak to one of our specialists, call 01922 922050 or email hello@bkplus.co.uk.
