New Chancellor Reverses Key Tax Measures
We witnessed an extraordinary post budget U-turn in our economy today. £45bn of unfunded tax cuts has in three weeks seen a £32bn reversal. The new budget measures will have a real impact, particularly on the targeting of energy bills after April 2023.
We will update our Budget PDFs with the new rates soon, but for now a summary of the new chancellor’s (Jeremy Hunt) measures, bringing forward measures from an economic plan due 31 October:
- scrapping of almost all tax measures announced in September’ mini-budget three weeks ago
- basic rate of income tax will remain at 20p indefinitely instead of reduced to 19p
- planned cuts to stamp duty and National Insurance will go ahead
- cap on energy bills now guaranteed until April next year, but then to be reviewed
- Corporation Tax – cancelling the rise from 19% to 25% scrapped
- Alcohol Duty – freezing rates scrapped
- VAT – Tax-free shopping for non-UK visitors scrapped
- (in addition to last week’s u-turn – 45p income tax on over £150k earners will not be scrapped)
- Stamp duty – no duty on first £250,000 of property value (England), retained
- No duty on first £425,000 for time buyers – retained
For advice on the impact of these tax changes, talk to our tax team. Request a callback on Let’s Talk.