Mini-Budget 2022
Chancellor Kwasi Kwarteng has drawn up a package of measures aiming to boost economic growth, helping people and businesses survive the cost of living crisis.
From a series of tax cuts and a cap on energy costs, reversing the increase of National Insurance to cutting stamp duty for property, we guide you through the new measures announced by the chancellor.
Key updates include:
- A cut to stamp duty effective as of today, aims to help more young people onto the property ladder. The threshold for first time buyers has risen from £300,000 to £425,000. You'll also be able to provide valuable guidance to existing clients considering trading up who will benefit from the increased threshold to £250,000, up from £125,000.
- The 1.25% rise in National Insurance will be reversed from 6 November. The Treasury estimates that nearly 28 million people will save an average of £330 a year, with approximately 920,000 firms getting a tax reduction of almost £10,000.
- Originally scheduled for 2024, the basic rate of income tax is to be cut to 19% in April 2023. The higher income tax of 45% is also to be abolished.
- Reversal of changes to off-payroll worker rules (IR35).
- The increase in corporation tax to 25% will not go ahead as planned in April 2023, but will remain at 19%.
- Additional changes to Benefit rules and limits on bankers’ bonuses were also announced.
Download the September Growth Plan Summary
Mr Kwarteng’s launch of ‘The Growth Plan’ contained some surprises, download the summary here (235 KB | pdf)
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