At A Glance: What's In The Mini-budget?

Friday September 23, 2022.

Chancellor Kwasi Kwarteng has unveiled what he claims are the biggest tax cuts in a generation, so what is in his mini-budget?

Income tax

Cut in basic rate of income tax to 19% from April 2023
Government estimates 31 million people getting £170 a year more
Currently, people in England, Wales and Northern Ireland pay 20% on any annual earning between £12,571 to £50,270 - rates in Scotland are different
45% higher rate of income tax abolished for England, Wales and Northern Ireland taxpayers
One single higher rate of income tax of 40% from April next year

National Insurance

Corporation tax

Benefits

Rules around universal credit tightened, by reducing benefits if people don't fulfil job search commitments
Around 120,000 more people on Universal Credit to be asked to take steps to seek more work, or face having their benefits reduced
Jobseekers over 50 to be given extra time with work coaches to help them return to job market

Work and investment

IR35 rules - the rules which govern off-payroll working - to be simplified
Annual investment allowance, the amount companies can invest tax free, remains at £1m indefinitely
Regulations change so pensions funds can increase UK investments
New and start-up companies able to raise up to £250,000 under scheme giving tax relief to investors
Share options for employees doubled from £30,000 to £60,000

Stamp duty

Cut to stamp duty which is paid when people buy a property in England and Northern Ireland
No stamp duty on first £250,000 and for first time buyers that rises to £425,000 - comes into operation today
200,000 more people will be taken out of paying stamp duty altogether, government claims

Energy

Freeze on energy bills, which the government claims will reduce inflation by 5 percentage points
Total cost for the energy package expected to be around £60bn for the six months from October

Bankers' bonuses

Rules which limit bankers' bonuses scrapped
Package of regulatory reforms to be set out later in the autumn

VAT-free shopping for overseas visitors
Planned increases in the duties on beer, for cider, for wine, and for spirits cancelled

Infrastructure and investment zones

Government discussing setting up investment zones with 38 local areas in England
Tax cuts and liberalised planning rules to be offered to release land for housing and commercial use
Investment zones offered measures such as no business rates and stamp duty waived
New legislation to cut planning rules, get rid of EU regulations and environmental assessments in an effort to speed up building

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At A Glance: What's In The Mini-budget?

Income tax

National Insurance

Corporation tax

Benefits

Work and investment

Stamp duty

Energy

Bankers' bonuses

Infrastructure and investment zones

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