No sooner than we share tax news… more U-turns are announced. So, whilst we will continue to keep you informed, it is hard to know when/if things might change again.
Since last week, we’ve seen Jeremy Hunt appointed to replace Kwasi Kwarteng, and in a statement on Monday morning, the new Chancellor dismantled further policies from the mini-budget of just a few weeks ago. The latest decisions include:
Reduced support with energy bills
The government's ‘Energy Price Guarantee’ was originally put in place for two years - to limit the price that suppliers could charge for each unit of energy. It will now only be in place for six months with The Treasury due to review the support given from April.
Income tax cut cancelled
The basic rate of income tax was due to be reduced to 19% but will instead stay at 20% indefinitely.
Cancellation of CT rise cancelled
The rise of Corporation Tax from 19% to 25% had been cancelled in the mini-budget. But this cancellation has now been cancelled, so CT will increase as originally planned.
Dividends tax cut cancelled
The cut to dividends tax is cancelled. The 1.25% increase, which took effect in April 2022, will now remain in place.
Alcohol Duty freezing rates cancelled
The planned freeze on Alcohol Duty has been scrapped.
Tax free shopping for UK visitors scrapped
The new VAT-free shopping scheme for non-UK visitors to Great Britain will not go ahead.
IR35 reforms now retained
The 2017 and 2021 reforms to the off-payroll working rules from April 2023 will now remain in place rather than being cancelled. There will be no change from the rules existing pre mini budget.
National Insurance cut retained
The 1.25% NI rise which was reversed during the mini-budget will not be reintroduced and will therefore still be cancelled from 6 November.
Stamp Duty changes retained
The changes to Stamp Duty as announced during the mini-budget will also stay. This means no duty on the first £250k of a property's value, or the first £425k for first time buyers.
If you have any questions or concerns, please don’t hesitate to get in touch.
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