The Chancellor has today delivered his ‘mini-budget’. Without the forecasts and economic analysis that normally accompanies a budget, Chancellor Kwasi Kwarteng set out some very big changes.

Income tax
The top rate of income tax will be abolished. The additional 45% rate is currently charged on income above £150,000 and was introduced in 2013 after the 50% rate introduced in 2010 was cut.

The basic rate of 20% will be cut to 19%.

Both tax cuts will be implemented from April 2023.

National insurance
The increase in National Insurance and the planned Health and Social Care Levy will be scrapped from November 2022. This move had been announced yesterday, but was reiterated today.

Corporation tax
It had been planned that from April 2023 corporation tax would be 25%. To help protect small businesses a £50,000 small profits rate would be introduced, set at the current rate of 19%. Once a company’s profits started to rise above £50,000 a taper would apply, so that only businesses with profits above £250,000 will have to pay the 25% rate. This will now be scrapped, with no change in the existing Corporation Tax structure.

Stamp duty
No stamp duty will be charged on the first £250,000 of a property purchase. First-time buyers will enjoy a higher allowance of £425,000.

VAT
VAT-free shopping will be introduced for tourists.

Excises duties
Planned increased in alcohol duties to be scrapped.

Help with energy costs
The support already announced by Government was reiterated.

Low tax investment zones
The Government has aspirations to create nearly 40 such zones. More details on them were announced, though we expect it will take sometime before all the facts become available. What we do know is that they will give businesses tax cuts for 10 years. This will include 100% tax relief on qualifying investments in plant and machinery, on purchases of land and buildings for commercial or new residential developments. No stamp duty will be charged on newly occupied business premises. Businesses will be exempt from business rates. Employers will pay no National Insurance on new employees on salary payments up to £50k.

Office of tax simplification
The Office of Tax Simplification is to be abolished.

Bank of England
The Chancellor confirmed that the Government supports the Bank of England’s continued independence.

THIS BUDGET WAS BASICALLY SCRAPPED AND UPDATED ON 17 NOVEMBER 2022 – UPDATED 17 NOVEMBER 2022