Mini budget 2022 explained

On the 23^rd September, Chancellor Kwasi Kwarteng announced his first ‘mini-budget’, in an effort to steady the UK economy. Here, we take a brief look at some of the key measures announced.

Income Tax

• The additional rate 45% income band tax will be scrapped from April 2023, while the 40% rate will remain in place.
• Basic rate income tax to be lowered to 19% (from 20% currently) from April 2023.

National Insurance

• The 1.25% rise in National Insurance that was introduced earlier this year will be scrapped from the  6th November.

Stamp Duty

• Stamp duty will no longer be payable on the first £250,000 of a property’s value (this is a rise from the current figure of £125,000).
• For first time buyers, stamp duty will no longer be payable on the first £425,000 of a property’s value (a rise from the current figure of £300,000).

Other tax changes

• Increases in duty rates planned for beer, wine, and cider will no longer go ahead.
• IR35 rules to be simplified.

Bankers’ bonuses

• The cap on bankers’ bonuses will be scrapped.

Corporation Tax

• The Corporation Tax increase planned for 2023 from 19% to 25% will no longer go ahead.

Investment Zones

• Almost 40 ‘investment zones’ will be created, which will include tax breaks for businesses and the relaxation of regulations.

New legislation on strikes

• New laws will require unions to put pay offers forward for a member vote, so that strikes can only be called once pay talks have completely broken down.

Please note, the information in this article is correct at the time of writing (September 2022).