Mini Budget 2022 – Key points
The new Chancellor Kwasi Kwarteng has announced the so-called ‘Mini Budget’ with a range of changes. We have set out below the key points to note.
- As widely predicted, the proposed 2023 increase in Corporation Tax rate to a top rate of 25% has been scrapped
- The previous 1.25 percentage point increase in NIC has been reversed saving both employees and employers on NIC.
- On Income tax the 45% top additional rate is to be abolished, and the basic rate cut to 19% from April 2023. The dividend rate is also to be reduced, effectively cancelling out the increase from April 2022 which matched the NIC rate rise.
- IR35 and Off payroll workers – the controversial changes which were recently introduced for both public and larger private enterprises are to be removed. An as yet unspecified review of IR35 is also proposed/
- SEIS and CSOP limits to be increased
- Annual Investment Allowance to stay at £1m
- Stamp duty land tax reductions on residential property with the main point being a doubling of the 0% band and increased 0% band for first-time buyers
If you or your clients require any assistance Eaves and Co will be happy to help, please feel free to get in touch today.”