Jeremy Hunt, the newly appointed chancellor has dismantled the mini-budget set just a few weeks ago. The mini-budget was only announced on 23 September 2022 but caused financial turmoil in the market. He announced that the government will reverse almost all of the tax measures announced that have not been legislated for so far.
The measures for stamp duty and national insurance will remain the same, however all other measures have been scrapped.
- National Insurance – the reversal of the 1.25% rise will remain in place
- Stamp duty – no duty on the first £250,000 of the property value will remain and no duty on the first £425,000 of the property value for first time buyers will also remain
- Income Tax – They had originally announced that the income tax would be cut from 20% to 19%, however they have now scarpped this and it will remain at 20%
- Income Tax – The proposal to remove the 45% additional rate of income tax for high earners has been scrapped.
- Corporation Tax – The government did announce that the rise of corporation tax would remain at 19%, however this has now been scrapped and the increase to 25% will go ahead from April 2023.
- Dividend Tax rate – The increase of 1.25% will now remain in place after it was originally announced it would be abolished.
- Energy bills – they energy price guarantee will now only cover up to April 2023 and it will now be reviewed after this date.
- IR35 – The reform of IR35 will no longer go ahead after originally announcing a promise to simplify the IR35 rules – these rules are in place to govern off-payroll working.
- Alcohol duty – The government proposed to cancel the planned increases in duty, this has now been reversed and the price of alcohol will soon rise.
- VAT-free shopping – The pledge for VAT-free shopping for overseas visitors has now been scrapped