The new Chancellor, Mr Jeremy Hunt, has reversed “almost all” of the tax cuts in the mini-budget.   So with Kwasi Kwarteng’s Mini Budget, followed swiftly by his U-turns on a couple of issues, and then Jeremy Hunt’s statement yesterday, you could be forgiven for being confused!!  Below is a brief summary of what Mr Hunt announced:-

The changes Mr Hunt revealed include:

  • No cuts to dividend tax rates – they will remain 1.25% higher
  • Repeal of the easing of IR35 rules for the self-employed introduced in 2017 and 2021
  • No new VAT-free shopping scheme for overseas visitors to the UK
  • No freeze on alcohol duty rates
  • Basic rate of income tax to remain at 20%, not reduce to 19% from April 2023
  • Energy price guarantee only until April 2023.

Of the tax changes announced in Kwasi Kwarteng’s mini-budget, all that remain are: the reversal of the National Insurance contributions rates increase and cancellation of the Health and Social Care Levy. cuts to Stamp Duty Land Tax. permanently setting the Annual Investment Allowance (AIA) at £1 million from April 2023.

Also, for the sake of clarification, please note that the additional (45%) rate of Income Tax will remain, and the corporation tax rise to 25% from 1st April 2023 will still go ahead.