The Mini Budget 2022 – what does it mean for you?

As the UK enters a new era under the tutelage of Liz Truss, the country’s recently-elected PM, Chancellor of the Exchequer Kwasi Kwarteng unveiled the Mini Budget on September 23, 2022 with the promise of boosting economic growth.

In a Commons statement, popularly dubbed as the “mini budget,” he agreed how the high tax rates have caused much damage to Britain’s competitiveness, minimising the incentive to work and for businesses to invest.

He further outlines a series of tax and money-saving measures, which he believes will boost growth in the UK. We highlight the main points below which will affect us all:

  • Income Tax – The basic rate of tax will be cut from 20p to 19p from April 2023, a year earlier than expected. Also from April 2023, the 45% top rate of tax paid by those earning in excess of £150,000 will be abolished meaning that the highest rate of tax will be 40% for all.
  • National Insurance – The 1.25% increase in NI, which has been in force since April has been reversed, with effect from November 2022.
  • Corporation Tax – The proposed increase in the Corporation Tax from 19% currently to 25% has been cancelled.
  • Stamp Duty – No Stamp Duty to be paid on the first £250,000. First-time buyers currently pay no Stamp Duty on the first £300,000 of a property. This will now be increased to £425,000 with immediate effect.
  • Alcohol duty – The proposed increase to beer, wine, cider and spirits has been cancelled.

If you have any questions about these matters, please do not hesitate to contact a member of the team by filling the contact form.