An overview of the Mini Budget Autumn 2022
Income tax
- Cut in basic rate of income tax to 19% from April 2023. Government estimates 31 million people getting £170 a year more – Currently, people in England, Wales and Northern Ireland pay 20% on any annual earning between £12,571 to £50,270 – rates in Scotland are different
- 45% higher rate of income tax abolished for England, Wales, and Northern Ireland taxpayers
- One single higher rate of income tax of 40% from April next year
National Insurance
- Reversed recent rise in National Insurance (NI) from 6 November. Workers and employers have paid an extra 1.25p in the pound since April
- New Health and Social Care Levy to pay for the NHS will not be introduced
Corporation tax
- Cancel UK-wide rise in corporation tax which was due to increase from 19% to 25% in April 2023
Benefits
- Rules around universal credit tightened, by reducing benefits if people do not fulfil job search commitments
- Around 120,000 more people on Universal Credit to be asked to take steps to seek more work, or face having their benefits reduced
- Jobseekers over 50 to be given extra time with work coaches to help them return to job market
Work and investment
- IR35 rules – the rules which govern off-payroll working – to be simplified
- Annual investment allowance, the amount companies can invest tax free, remains at £1m indefinitely
- Regulations change so pensions funds can increase UK investments
- New and start-up companies able to raise up to £250,000 under scheme giving tax relief to investors
- Share options for employees doubled from £30,000 to £60,000
Stamp duty
- Cut to stamp duty which is paid when people buy a property in England and Northern Ireland
- No stamp duty on first £250,000 and for first time buyers that rises to £425,000 – comes into operation today
- 200,000 more people will be taken out of paying stamp duty altogether, government claims
Energy
- Freeze on energy bills, which the government claims will reduce inflation by 5 percentage points
- Total cost for the energy package expected to be around £60bn for the six months from October
Bankers’ bonuses
- Rules which limit bankers’ bonuses scrapped
- Package of regulatory reforms to be set out later in the autumn
Shopping
- VAT-free shopping for overseas visitors
- Planned increases in the duties on beer, for cider, for wine, and for spirits cancelled
Infrastructure and investment zones
- Government discussing setting up investment zones with 38 local areas in England
- Tax cuts and liberalised planning rules to be offered to release land for housing and commercial use
- Investment zones offered measures such as no business rates and stamp duty waived
- New legislation to cut planning rules, get rid of EU regulations and environmental assessments in an effort to speed up building