Mini Budget: At-a-glance guide

Chancellor of the Exchequer Kwasi Kwarteng unveiled his mini-Budget in the House of Commons on Friday. Here are the main points:

UK Chancellor of the Exchequer Kwasi Kwarteng

 

Tax and National Insurance

  • Cut in basic rate of income tax to 19% from April 2023.
  • 45% higher rate of income tax abolished for England, Wales and Northern Ireland taxpayers.
  • One single higher rate of income tax of 40% from April 2023.
  • Reversal of recent rise in National Insurance from November 6.
  • UK-wide rise in corporation tax, from 19% to 25% now scrapped.

Work, investment and pensions

  • IR35 rules governing off-payroll working to be simplified.
  • Annual investment allowance, the amount companies can invest tax free, remains at £1m.
  • Easier for pensions funds to increase UK investments.
  • New and start-up businesses able to raise up to £250,000 under scheme giving tax relief to investors.
  • Share options for employees doubled from £30,000 to £60,000.
  • Rules which limit bankers’ bonuses scrapped.

Investment zones

  • Government to set investment zones with 38 local areas in England, including Liverpool city region and Cheshire.
  • Tax cuts and liberalised planning rules to release land for housing and commercial use.
  • Investment zones offering measures such as no business rates and stamp duty waived.
  • New legislation to cut planning rules.

Stamp duty

  • No stamp duty on first £250,000.
  • Threshold for first time buyers rises to £425,000.
  • Comes into operation immediately.

Energy

  • Freeze on energy bills, which the government claims will reduce inflation by 5 percentage points.
  • Total cost for the energy package expected to be around £60bn for the six months from October.

Retail

  • VAT-free shopping for overseas visitors.
  • Planned increases in the duties on beer, for cider, for wine, and for spirits cancelled.

Benefits

  • People on universal credit will see benefits reduced if they don’t fulfil job search commitments.
  • Jobseekers over 50 to be given extra time with work coaches to help them return to job market.

Click here to read the main Budget report

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