The new Chancellor, Jeremy Hunt, has rewritten the future of your finances by undoing policies from the so-called mini-budget only a few weeks ago.
Changes in several areas, such as income tax and energy bills, will have a direct impact on your finances. We have summarised what has been kept and what has been reversed in the Chancellor’s recent statement…
What Is Reversed?
- It has been decided to postpone, indefinitely, a planned 1p drop in the basic rate of income tax, so that the rate will stay at 20% for the foreseeable future.
- The energy price guarantee period has been reduced to one year. The present limit on energy prices will stay in effect until April 2023. In 6 months, there will be a new evaluation outlining how to save costs and improve the efficiency of targeted support.
- There will be no reduction in dividend tax going forward.
- VAT-free shopping for visitors and alcohol duty freeze scrapped.
- Changes to IR35, or the off-payroll working rules, will no longer be repealed.
- Stamp duty cuts. Buyers in England and Northern Ireland no longer have to pay stamp duty on the first £250,000 of a property’s worth. Stamp duty is waived up to £425,000 for first-time homebuyers.
- National Insurance contributions increased by 1.25% in April 2022, announced by former Chancellor, Rishi Sunak. These are to now return to their previous levels.
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