Mini-budget summary 2022

23 September 2022

The Chancellor of the Exchequer made a fiscal statement in the form of a "mini-budget" this morning and we summarise the headline changes in tax below:

Income tax

  • The proposed cut to the basic rate of tax from 20% to 19% has been brought forward from April 2024 to April 2023
  • The additional rate of tax of 45% on income over £150,000 has been abolished
  • From April 2023 there will be a single higher income tax rate of 40%
  • The basic rate of Gift Aid relief of 20% will be maintained for 4 years until April 2027
  • From April 2023 the 1.25% increase to the rate of income tax on dividends will be reversed

Stamp Duty Land Tax (SDLT)

  • The SDLT threshold has risen from £125,000 to £250,000
  • The threshold for first time buyers has been increased from £300,000 to £425,000
  • First time buyer relief will apply to purchases of property £625,000 rather than the current £500,000
  • From today 23 September 2022 the SDLT rates will be:

Property Value

Standard residential rates
£0 to £250,000 0%
£250,001 to £925,000 5%
£925,001 to £1,500,000 10%
£1,500,001 + 12%
  • The 3% higher rate on additional properties and the 2% non-resident's surcharge remain

Corporation tax

  • The Government has cancelled the planned increase in corporation tax from 19% to 25% planned for April 2023
  • The Annual Investment Allowance has been set permanently at £1,000,000 rather then following the proposed reduction to £200,000 – this is a 100% capital allowance for qualifying expenditure on plant and machinery

National insurance

  • The 1.25% rise in national insurance contributions which took effect in April 2022 has been cancelled
  • Rates will be reduced from 6 November 2022
  • The proposed 1.25% Health and Social Care levy will not come into force as a separate tax from 6 April 2023

Contractors and consultants

  • The 2017 and 2021 reforms to the off-payroll working rules (also known as IR35) will be repealed from 6 April 2023. From this date, workers providing their services via an intermediary will once again be responsible for determining their employment status and paying the appropriate amount of The Growth Plan 2022/23 tax and National Insurance contributions.

Alcohol duty

  • The Government is freezing the alcohol duty rates from 1 Feb 2023 to provide additional support to the sector

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