| 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. Below we have summarised some of the key announcements. 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 (that came in on 6 April 2022) 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. 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. IR35 The IR35 rules are to be simplified and the rules introduced in 2017 and 2021 will be scrapped from next year. |
Budge Summary 6 March 2024
Today Chancellor, Jeremy Hunt unveiled the Spring Budget. Below we...
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