Mini – Budget 2022 Summary

Income Tax

The basic rate of income tax would be cut from 20% to 19% from April 2023, a year earlier than planned.  This is tax paid on earnings between £12,571 and £50,270.

No change to the personal allowance which remains at £12,570.

From April 2023 a single higher rate of income tax at 40% applies, with the 45% rate abolished.

National Insurance

The 1.25% point rise in national insurance contributions is reversed from 6 November 2022. This was introduced in April 2022 as dedicated funding source for health and social care.

The New Health and Social Care Levy to pay for the NHS will not be introduced.

Corporation tax

The planned increase in corporation tax on company profits above £250,000 from the current 19% to 25% in April 2023 has been cancelled.

Stamp duty

Stamp duty has been cut from 23 September 2022. Currently no stamp duty is paid on the first £125,000 property value, this now doubles to £250,000.

For first time buyers, no stamp duty is paid on the first £425,000.

Others

  • IR35 rules which apply to contractors will be simplified to remove “unnecessary complexity and cost” for businesses.
  • Planned increases in duty rates for beer, wine and cider will be cancelled
  • Rules limiting bankers bonuses have been scrapped.
  • Strikes legislation will require unions to put pay offers to a member vote, to ensure strikes can only be called once pay talks have genuinely broken down.
  • 40 investment zones will be created with tax breaks for businesses. Investment zones to offer  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
  • VAT-free shopping for overseas visitors.