The UK government’s finances were shaken up today when Chancellor Kwasi Kwarteng unveiled a range of tax cuts and economic measures in the form of a mini-budget. The most important points of the budget announcement are summarised below…
Income Tax
From April 2023 on, the basic income tax rate will be reduced to 19%.
Taxpayers in England, Wales, and Northern Ireland will no longer be subject to the higher income tax rate of 45%.
Starting in April of next year, there will be a single, higher income tax rate of 40%.
National Insurance
From November 6th, the National Insurance (NI) rate increase will be rolled back.
Stamp Duty
As of today, first-time buyers are exempt from paying stamp duty on the first £425,000 of a property’s value. No stamp duty on first £250,000.
Corporation Tax
April 2023’s planned increase in company tax in the United Kingdom from 19% to 25% has been stopped.
IR35
A simplification of the regulations governing non-payroll labour is in the works.
VAT
Shopping will be VAT-free for tourists
Energy
Freeze on energy bills, which the government claims will reduce inflation by 5%
Please get in touch with us at enquiries@aitaccountants.co.uk if you require any help or support in relation to the latest budget announcements.
0 Comments