UK mini-budget 2022
The UK’s new Chancellor of the Exchequer, Kwasi Kwarteng, delivered a mini-budget on 23 September 2022 (referred to by the government as its “Growth Plan”) with numerous tax cuts and significant changes. As widely expected, the government is cancelling the corporation tax increase which was scheduled for April 2023 so that the rate will remain at 19%, the lowest in the G20. The government is also bringing forward the planned cut to the basic rate of income tax to April 2023, taking it to 19%, and abolishing the 45% rate entirely. Changes made to the “IR35” rules in recent years are to be reversed, thereby going back to the position that the personal service company is responsible for complying with the rules. The government is introducing new Investment Zones which will provide various targeted tax reliefs and stamp duty land tax on certain residential purchases will be reduced.
These changes follow an announcement made the day before the budget that this year’s national insurance increase of 1.25% will be reversed, and the equivalent rises in rates of tax on dividends for individuals will also be reversed from April 2023.
For further details on these and other announcements, see below: