Chancellor Kwasi Kwarteng has today outlined a series of tax cuts and economic measures to stimulate growth in the UK:
Income tax – Top rate (45% for earners over £150k) scrapped and basic rate cut from 20% to 19%, effective April 2023
National Insurance – The 1.25% rise in NI that was brought in April 2022 will be scrapped as well as the increase in Employer National Insurance Contributions and dividends tax, all from November 6th
Corporation Tax – Contrary to current tax cuts, cancelled future increase to 25%, rate to stay at 19%
IR35 – Recent reforms to the Public Sector (2017) and Private Sector (2021) will be scrapped.
Infrastructure – Planning rules for major projects to be simplified
Strikes – Minimum service guarantees to prevent future industrial action
Bankers Bonuses – The limit of bonuses set at 200% of salary will be scrapped
Universal Benefits – More encouragements for people to return to the labour market who are able
Stamp Duty – No stamp duty to pay on the first £250k of a property’s value (doubled from £125k) and first time buyers will pay nothing on the first £425k of a property’s value (up from £300k)
Duty – Recent rises in tax on beer, cider, wine and spirits will be scrapped
Tourism – Overseas shoppers in the UK will no longer have to pay VAT on their purchases
Tax Simplification – Office of Tax Simplification to be wound down
