The new Chancellor, Jeremy Hunt, has issued an emergency statement announcing the reversal of almost all of the tax measures outlined previously in the mini-budget. A summary of the key points can be read below:
- Basic income tax rate cut by 1p to 19%
- Off-payroll working rules (IR35) will no longer be repealed, meaning end clients will remain responsible and liable for determining employment status
- The cancellation of the corporation tax rise from 19% to 25%
- 2-year universal energy support package
- The removal of the 45p rate of income tax for highest earners
- VAT-free shopping scheme for non-UK visitors
- Freeze on alcohol duty rates
Continuing to go ahead
- No cap on bankers’ bonuses
- Reversal of the planned 1.25% rise national insurance
- No stamp duty on the first £250,000 of a property’s value, or the first £425,000 for first time buyers
The Chancellor's full plan will be published on 31st October.
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