Mini budget update
What a few weeks it’s been! We had a budget which changed a few taxes quite considerably, and now we’ve had the reversal of most of the changes! Oh, and a new Chancellor!
When Kwasi Kwarteng announced his mini budget originally, the markets reacted very strongly against it. He was forced to reverse some of his announcements, was sacked, and replaced by Jeremy Hunt.
Almost all of the announcements in the original mini budget have now been reversed.
- Cuts to stamp duty
- Cuts to national insurance. The 1.25% point increase in national insurance that happened from April 2022 will be abolished from 6 November 2022.
- The £1m annual investment allowance
What’s been reversed:
- Cut in basic rate tax (Will stay at 20p, not reduce to 19p)
- Additional tax rate will remain at 45p (Not decrease to 40p)
- The original IR35 rules will remain
- Dividend tax rates won’t be decreased (The 1.25% point increase in dividend tax rates that was introduced from April 2022 will remain)
- Corporation tax was due to remain at 19%, but will now increase to 25% from April 2023
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