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UK Government Mini Budget

Written by Tony Shackleford on .

The principal proposals announced by the Chancellor in his recent mini budget are as follows:

Both employers and employees National Insurance rates will reduce by 1.25% from 6 November 2022. This is a reversal of the increase in National Insurance Contributions which occurred on 6 April 2022.

The 1.25% increase in dividend tax rates, which came into effect on 6 April 2022, is being reversed on 6 April 2023.

The basic rate of income tax is being reduced from 20% to 19% from 6 April 2023.

The top rate of income tax is being abolished from 6 April 2023. Currently earned income suffers income tax at 20%, 40% and 45%. From 6 April 2023 the rates of income tax, will be 19% and 40% only.

The increase in the basic rate of corporation tax from 19% to 25%, which was due to happen on 1 April 2023, has been cancelled.

Stamp Duty Land Tax (SDLT) on residential properties will now only apply to properties costing £250,000 or more (previously £125,000). SDLT for first time buyers will now start on properties at £425,000 rather than £300,000.