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Mini Budget 2022 – Our team reacts

Initial reactions to the Mini Budget on 23 September 2022 from our Tax experts

 

"In advance of the Budget, there was speculation that a planned 1p reduction in the basic rate of income tax could be brought forward. The reduction has been confirmed and will be effective from 6 April 2023. More surprising was the announcement of the abolition of the Additional rate tax band from April 2023, reducing the top rate from 45% to 40% for taxpayers earning over £150,000."

Stephen Kenny | Personal Tax Partner

"The planned increase in Corporation Tax to 25% from April 2023 is confirmed as abandoned. It will remain at 19%."










Catherine Heyes | Corporate Tax Partner

"In line with the cut in National Insurance, the Chancellor will also reverse the 1.25% increase in dividends introduced in April 2022; the ordinary and upper rates for dividends will be reduced to 7.5% and 32.5%."








Stephen Kenny | Personal Tax Partner

"Increases to the amount that can be raised under the Seed Enterprise Investment Scheme will be of interest to start ups that have yet to raise significant capital."




Chris Riley | Head of Tax

"There have been no announcements on Inheritance Tax, which the Prime Minister had committed to review in her leadership campaign. This might be something we see in a full Budget later in the year as will require a detailed consultation."


Stephen Kenny | Personal Tax Partner

"Good news for property purchases with the Stamp Duty Land Tax (SDLT) 0% threshold to be increased to £250,000, from £125,000. Further help also for first time buyers who currently pay no SDLT on the first £300,000; this will be raised to £425,000."

Catherine Heyes | Corporate Tax Partner

"The Annual Investment Allowance will remain at £1m to encourage growth."




Howard Jones | Corporate Tax Partner

"Welcome news today of the return of the VAT Retail Export Scheme and 'tax-free' airside shopping which were both removed on 31 December 2020."

Mark Ellis | Indirect Taxes Partner