Mini Budget (September 2022) – Key Points
Below is a summary of some of the key changes, announced by the Chancellor today.
Corporation Tax
The planned increase in Corporation Tax to 25%, due to take place in April next year, has been scrapped and will therefore remain at 19%.
See here for further details.
Income Tax
A 1% reduction to the basic rate of Income Tax was due to be applied from April 2024. This has now been brought forward to April 2023 and will therefore take the current basic rate of tax from 20% to 19%.
The 45% additional rate of tax, currently applied to income above £150,000, will be abolished from April 2023, leaving a single higher rate of tax of 40%.
See here for further details.
National Insurance and the Health and Social Care Levy
The Health and Social Care Levy, introduced in April this year as a 1.25% increase to National Insurance Contributions, has been cancelled. From 6th November 2022, National Insurance rates will be reduced by 1.25%.
See here for further details.
Stamp Duty Land Tax
Stamp Duty Land Tax (SDLT) will be cut for those purchasing a residential property by increasing the level at which SDLT is paid from £125,000 to £250,000.
The level at which first time buyers start paying SDLT has also been increased from £300,000 to £425,000.
These measures will reduce SDLT bills for all residential property buyers by up to £2,500.
See here for further details.
