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.