Mini Budget 23 September 2022

Kwasi Kwarteng revealed a package of tax cuts as part of the Government's growth plan. A plan he claimed would tackle inflation and high energy costs through growth in the economy.

The main points arising from Friday's statement are as follows:

• Corporation tax
  The planned increase in corporation tax rate has been cancelled. Rather than rising to 25% from 1 April 2023, the rate will remain as 19%.
• Income tax
  The planned reduction in the basic rate of income tax has been brought forward to 1 April 2023, meaning that the basic rate of income tax will be cut from 20% to 19%. From the same date there will be a single rate of higher rate income tax, being 40%, with the 45% tax band being abolished.
• National Insurance
  National Insurance rates will be reduced from 6 November 2022 by removing the temporary 1.25% increase which originally applied to tax year 2022/23. The 1.25% Health and Social Care Levy will not come into force as originally planned from 6 April 2023.
• Stamp Duty Land Tax
  The level at which Stamp Duty Land Tax is paid is increased from £125,000 to £250,000. The level at which Stamp Duty Land Tax is paid by First time buyers will increase from £300,000 to £425,000.
• Capital allowances
  The temporary £1 million level of the Annual Investment Allowance will be made permanent, instead of it falling to £200k after 31 March 2023.
• Seed Enterprise Investment Scheme
  Limit raised from £150k to £250k for companies raising amounts under SEIS. The gross assets limit will be raised to £300k (previously £200k) and the maximum age of the trade will be increased to 3 years from 2 years. The annual investor limit will also increase to £200k.
• Investment zones
  Almost 40 investment zones could be created with planning relaxations and tax incentives to encourage businesses investment.

If you would like to discuss any of the above please email either richard.bunker@corrigan.co.uk or pete.edwards@corrigan.co.uk.