The new Chancellor Jeremy Hunt this morning made a statement with the intention of giving stability to markets. He advised that almost all tax measures announced in September’s Growth Plan will now be reversed.
The chancellor confirmed the following proposed changes will now no longer proceed:
• Cutting dividends tax by 1.25% from April 2023
• The 1p cut to the basic rate of income tax, stating that it will in fact remain at 20% indefinitely
• The repeal of off payroll tax reforms (IR35) meaning that the reforms of 2017 and 2021 still stand
• Freeze on alcohol duty rates
• VAT free shopping scheme for UK visitors
The Energy Price Guarantee will also still proceed until April 2023, but will not continue beyond that.
The previously announced changes to the Health & Safety levy and rise in the Stamp Duty thresholds will still go ahead as planned, with the latter measure already in effect.
This morning’s announcements come on the back of the Prime Minister’s statement on Friday that the increase in corporation tax to 25%, due to come into effect in April 2023, will also still go ahead.
A full fiscal event will proceed in a fortnight’s time on 31st October 2022, and we will of course keep you updated as to the announcements as they happen.
The Chancellor warned that there are more difficult decisions to come. We appreciate this is a particularly turbulent time for businesses and individuals alike, so please do contact your usual engagement partner if you have any questions.