23rd September 2022
Headline announcements
- Corporation tax – planned rise to 25% cancelled. Will remain at 19%
- Annual Investment Allowance – will remain at £1 million
- 25% NIC increase cancelled from November 2023
- 25% Health & Social Care Levy and dividend tax increases cancelled from April 2023
- SDLT limits increased. No SDLT payable on first £250k of a property; £425k for first time buyers. Effective from today.
- Abolish additional rate of tax (charged on income over £150k) from April 2023
- Cut basic rate of income tax to 19% from April 2023
- Targeting growth at 2.5%
- Energy support – households and businesses unit price cap guarantee
- Investment zones – liberalised planning and significant tax reliefs
- IR35 (Off-payroll working) reforms of 2017 and 2021 repealed
Announcements in full
Business taxes
- Planned Corporation Tax increase from April 2023 up to 25% is scrapped. Corporation Tax to remain at 19%. Some changes expected to ‘super-deduction’ rules.
- Annual Investment Allowance cut will be scrapped. AIA will remain at £1m for businesses.
- Alcohol duties to be frozen
- Repeal Off Payroll working (IR35) reforms of 2017 and 2021 from 06 April 2023. Workers will be responsible for determining their own employment status and paying the appropriate taxes, rather than the contracting entity.
- VAT free shopping for overseas tourists
- Increases to funding permissible to companies through SEIS investments
Personal taxes
- Additional rate of tax, paid on income over £150k will be abolished from April 2023
- Basic rate of tax to be cut to 19% from April 2023
- Stamp Duty Land Tax limits are being increased. No SDLT will be payable on first £250k of property purchase, or £425k for first time buyers. The property value increases for first time buyers relief from £500k to £625k. Effective immediately.
- Dividend tax increase of 1.25%pts is being reversed from April 2023. Basic rate dividends will be taxed at 7.5% and higher rate at 32.5%.
- National insurance (Class 1 and 4) reducing by 1.25%pts from 06 November 2023
- Health & Social Care Levy duty to come in from April 2023 has been cancelled
- Universal credit will see increased sanctions regime to set increase work expectations
Energy support to cost £60bn
- Households – £2,500 price cap on domestic energy, £400 energy bill support for all, and more support for vulnerable households
- Businesses – Energy Bill Relief Scheme will provide a price guarantee equivalent to that of households
Planning
- Planning reform and freeing up surplus government land to increase development
Curtailing union power
- Conditions imposed on unions wanting to strike and legislate so that unions need to put pay offers to a vote
Bankers’ bonuses
- Lifting the cap on bonuses paid to UK bankers
Investment Zones
- Reviewing up to 40 potential sites around the UK – not yet determined
- Liberalised planning rules to push for development
- Within zones significant tax reliefs available:
– No Stamp Duty on purchase of land
– No business rates
– New employees hired in the zone – no Employers NIC on first £50k earned
– Accelerated tax relief on construction of structures and buildings
– 100% tax relief on qualifying items of plant and machinery
