The Chancellor, Kwasi Kwarteng, delivered an explosive mini-budget today in a massive shake-up of the UK's finances.
A summary of the points can be read below:
· Basic rate of income tax cut to 19p a year earlier from April 2023, with the 45% higher rate "abolished" and replaced with a single higher rate of 40%
· The government will cut stamp duty land tax, with the limit raised to £250,000 or £425,000 for first- time buyers
· The planned increase in corporation tax has been cancelled, so it will remain at 19%
· The government will scrap the cap on bankers' bonuses and replace it with regulatory reforms
· Legislation to require unions to put pay offers to a member vote to ensure strikes can only be called once negotiations have broken down
· Reduced benefits if people do not fulfil their job searching commitments
· The planned duty rates increase on beer, wine and spirits is cancelled
· Reform the pension charge cap, so pension funds can invest more easily in UK assets
· Repeal of 2017 and 2021 IR35 Off-Payroll Working Rules reform from April 2023
· A new bill to unpick the complex patchwork of planning restrictions and EU-derived laws that he says "constrain our growth"
· Cut taxes for businesses in designated tax sites for 10 years
· VAT-free shopping for overseas visitors
The full Growth Plan for 2022 can be read here: The Growth Plan 2022 (publishing.service.gov.uk)
For further information about how this could affect your business, please contact compliance@sbcontracting.co.uk.
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