Chancellor Jeremy Hunt has announced a reset of government fiscal policy, reversing ‘almost all the tax measures’ from the mini-Budget.
In his statement on Monday 17 October 2022, Chancellor Hunt announced that ‘almost all’ tax measures proposed in the mini-Budget would be reversed, other than those for which legislation had already been introduced.
The following measures will now not be going ahead:
scrapping of the 45% additional rate of income tax;
reduction in the basic rate of income tax - the basic rate will instead remain at 20% ‘indefinitely’ until economic circumstances allow for a cut;
cuts to dividend tax rates - the 1.25 percentage point increase which took effect in April 2022 will remain in place;
removal of the 2017 and 2021 off-payroll working rules - the reforms will remain in place;
introduction of a VAT retail scheme for overseas visitors; and
freeze on alcohol duty rates - the alcohol duty review will continue as planned.
The following changes are going ahead:
scrapping of the health and social care levy (and associated NICs increases);
changes to stamp duty land tax rates and bands;
introduction of a permanent £1m annual investment allowance; and
changes to the seed enterprise investment scheme and company share option schemes rules.
In response to a question in the House of Commons on the introduction of investment zones, the Chancellor said that the policy will be implemented in a way that learns the lessons from other similar models that have been tried in the past.
‘The Council will act as a consultative forum for the government to be advised on UK and international economics and financial markets, in line with the Prime Minister’s previous commitment. The Council will consist of leading and respected economists and will be attended by the Chancellor and the Treasury’s Chief Economic Adviser.’
The UK government intends to proceed with its medium-term fiscal plan on 31 October, when ‘further changes to fiscal policy’ are expected.
On Friday 14 October, Prime Minister Liz Truss announced that the main rate of corporation tax would increase to 25% from 1 April 2023. She also confirmed that Jeremy Hunt had replaced Kwasi Kwarteng as Chancellor, and Edward Argar had replaced Chris Philp as Chief Secretary to the Treasury.
Chancellor Jeremy Hunt has announced a reset of government fiscal policy, reversing ‘almost all the tax measures’ from the mini-Budget.
In his statement on Monday 17 October 2022, Chancellor Hunt announced that ‘almost all’ tax measures proposed in the mini-Budget would be reversed, other than those for which legislation had already been introduced.
The following measures will now not be going ahead:
scrapping of the 45% additional rate of income tax;
reduction in the basic rate of income tax - the basic rate will instead remain at 20% ‘indefinitely’ until economic circumstances allow for a cut;
cuts to dividend tax rates - the 1.25 percentage point increase which took effect in April 2022 will remain in place;
removal of the 2017 and 2021 off-payroll working rules - the reforms will remain in place;
introduction of a VAT retail scheme for overseas visitors; and
freeze on alcohol duty rates - the alcohol duty review will continue as planned.
The following changes are going ahead:
scrapping of the health and social care levy (and associated NICs increases);
changes to stamp duty land tax rates and bands;
introduction of a permanent £1m annual investment allowance; and
changes to the seed enterprise investment scheme and company share option schemes rules.
In response to a question in the House of Commons on the introduction of investment zones, the Chancellor said that the policy will be implemented in a way that learns the lessons from other similar models that have been tried in the past.
‘The Council will act as a consultative forum for the government to be advised on UK and international economics and financial markets, in line with the Prime Minister’s previous commitment. The Council will consist of leading and respected economists and will be attended by the Chancellor and the Treasury’s Chief Economic Adviser.’
The UK government intends to proceed with its medium-term fiscal plan on 31 October, when ‘further changes to fiscal policy’ are expected.
On Friday 14 October, Prime Minister Liz Truss announced that the main rate of corporation tax would increase to 25% from 1 April 2023. She also confirmed that Jeremy Hunt had replaced Kwasi Kwarteng as Chancellor, and Edward Argar had replaced Chris Philp as Chief Secretary to the Treasury.
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