Emergency mini-budget summary
NB. This budget summary was prepared before the Chancellor’s later decision to reverse the change to the 45% band.
The “Emergency Mini-Budget” on Friday 23 September 2022 was anything but mini, with a number of radical announcements delivered by the new Chancellor, Kwasi Kwarteng. What the main announcements mean for you & your business, have been summarised for us by EQ Taxperts:
A headline measure was the reduction in the basic rate of Income Tax to 19% with effect from 6 April 2023 together with the more surprising removal of the 45% Income Tax rate. Please remember that the Scottish Government has yet to decide on its response and it will be interesting to see whether they match the Income Tax reduction, although it seems highly unlikely that they will remove the 45% tax rate. For businesses, the reversal of the proposed Corporation Tax rate rise will be very welcome along with the confirmation of the National Insurance Contributions cut.
The Chancellor delivered the most significant tax cuts of a generation intended to stimulate the UK economy and we keep our fingers crossed that this “gamble” pays off. A further Budget is expect later in the year, likely November, and further tax cuts have been promised. Tax partner, Gordon Buist, commented, “This Budget certainly came as a surprise to most tax advisers with a much deeper than envisaged set of cuts delivered. Time will tell whether these and other measures will deliver the anticipated growth but you can rest assured that our team will keep you abreast of changes as they affect you.”
Download or view the EQ summary here.
EQ would be happy to discuss what these changes mean for you and your business so if you would like to discuss your circumstances, please contact EQ directly.