Taxpayers – Tax Cuts effective from 6th April 23
- Cut the basic rate of income tax to 19%
- Currently, people in England, Wales, and Northern Ireland pay 20% on any annual earning between £12,571 to £50,270
- 45% higher rate of income tax abolished
- One single higher rate of income tax of 40% from April next year
- Cancel the rise in corporation tax which was due to increase from 19% to 25% in April 2023
House buyers – Stamp Duty Cut
- From today, 23rd Sep 2022, you won’t pay any stamp duty on the first £250,000 of property (doubled from £125,000). The Treasury says this means 200,000 more people every year will be able to buy a home without paying any Stamp Duty at all.
- And first-time buyers will now pay no stamp duty up to £425,000 (up from £300,000). The Government has also increased the value of the property on which first-time buyers can claim relief, from £500,000 to £625,000.
National insurance rates are to be cut from November
- New rates will take effect on 6 November 2022.
- The 1.25 percentage point rise in national insurance contributions (NICs), which took effect earlier this year, will be reversed in November. The change, which was announced yesterday, will benefit almost 28 million working people. It will be worth £330 on average in 2023-24, with an additional saving of around £135 on average this year, according to the Treasury.
- He also promised to reform the hated “IR35” tax rules for the self-employed, which can result in them being taxed as if they were employees. Reforms to the system introduced in 2017 and last year will be scrapped.
- The rise in tax rates on dividend income, which are linked to the rise in National Insurance rates, will also be reversed. Abandoned rises in corporation tax also mean that investors who own shares will keep more of the profits made by the companies they invest in.
- Investors will be given the chance to put money into more specialized funds by the removal of a cap on fees for certain schemes.
- Low corporation tax rates also benefit landlords who own property via limited companies.
- The Chancellor said unemployed people over the age of 50 would receive additional help, although he gave no details.
- The link with inflation will be broken.
- Total cost for energy package expected to be around £60bn for the six months from October 22 till March 23 for Households & Business.