Mini Budget 2022 : We summarise the Key points for you

Mini Budget 2022 : We summarise the Key points for you UPDATED for the Chancellor's announcement on 3 October 2022

Chancellor Kwasi Kwarteng made a series of tax cuts in his Mini Budget with the aim of boosting the UK’s economic growth. In addition, to tax cuts totaling £45 billion, the Chancellor outlined a number of other measures as he promised a ‘new era for Britain’.

The changes are significant, and we have summarised the key points that impact you below:

• The planned increase in Corporation Tax to 25% from April 2023 has now been scrapped and will be maintained at the current 19% rate.
• Basic rate of Income Tax cut bringing forward the planned reduction in the basic rate of income tax to 19p by a year to April 2023. At the Mini Budget on 23 September the government announced a plan to abolish the 45% additional rate of income tax from April 2023. However, Chancellor Kwarteng stated on 3 October that the government would not proceed with the abolition of the 45p tax rate.
• The introduction of Investment Zones to be established across the UK, that will benefit from lower taxes and liberalised planning frameworks to encourage business investment.  The Government is in discussions with 38 local authorities to establish these zones, Derbyshire County Council and Nottinghamshire County Council are amongst the local authorities currently involved in these talks.
• Repeal of off-payroll working (IR35) reforms. The IR35 Reforms, which rolled into the public and private sectors in 2017 and 2021 respectively will no longer apply from April 2023.
• The 1.25% rise in national insurance contributions (NICs) that came into effect this year will be reversed from 6 November while the Health and Social Care Levy has been cancelled.
• Additionally, the level at which homebuyers will start to pay Stamp Duty Land Tax (SDLT) in England and Northern Ireland has been doubled from £125,000 to £250,000. First-time homebuyers will pay no SDLT on homes worth £450,000, up from the previous price of £300,000.

If you would like to discuss how the changes may impact you, then please contact your local Haines Watts offices in Derby or Nottingham, we'd be happy to start a conversation with you. 

Our full summary will be available next week, in the meantime further useful GOV.UK www.gov.uk links to each of the major measures are shown below: