We like to keep you informed of key tax announcements, whilst being mindful not to overcommunicate. Please find below a summary of measures from the September Growth Plan and subsequent reversals made by the new Chancellor Jeremy Hunt. We are hopeful that our Budgetary updates return to the usual schedule of two fiscal events per annum!

Measures reversed

• The cut to 19% in the basic rate of tax (outside Scotland) from 2023/24 will not take place. Instead, basic rate will remain at 20% “indefinitely”, meaning that even Rishi Sunak’s 2024/25 scheduled timing has been dropped.
• The off payroll working rules in the public and private sectors (often referred to as IR35) will remain in place, reversing their removal at the start of the next tax year.
• The 1.25 percentage points reduction in dividend tax rates, due from 2023/24, will be scrapped.
• VAT-free shopping for overseas visitors will not be re-introduced.
• There will now be no freeze on alcohol duty for one year from February 2023.

Under review

• The Energy Price Guarantee (EPG), which was due to cap average domestic bills at £2,500 a year for two years from the start of October, will be scaled back to last only until April 2023. In the meantime, the Treasury will design “a new approach that will cost the taxpayer significantly less than planned whilst ensuring enough support for those in need”. Any support for businesses from April 2023 “will be targeted to those most affected”.

Measures retained

• The reduction in national insurance contributions, which reached its third reading in the House of Lords on 17 October, will go ahead.
• The stamp duty land tax cuts that took effect on 23 September will not be reversed.
• The extension of the £1 million annual investment allowance beyond March 2023 remains, as do enhancements to the seed enterprise investment scheme (SEIS) and company share option plans.

The Chancellor’s medium-term fiscal plan will be announced on 31 October alongside the publication of the Office for Budget Responsibility’s Economic and Fiscal Outlook.

Naturally, all Budget changes that affect you personally will be picked up at our regular reviews, but in the meantime should you have any questions, then please do not hesitate to contact your adviser.

The contents of the article have been prepared solely for information purposes. The article contains information on financial products and services and such information is designed for and addressed solely to individuals seeking generic industry information. Taxation depends on your individual circumstances and may be subject to future change.