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UK Mini-Budget Highlights

Recently, Chancellor Kwasi Kwarteng unveiled a comprehensive ‘mini-budget’ in the UK, encompassing significant cuts to income tax, national insurance, corporate tax, stamp duty land tax, and more.

Here are the key announcements:

  • The basic rate of income tax will witness a 1% reduction to 19% starting from April 2023.
  • The 45% income tax rate will be eliminated, resulting in a top rate of income tax at 40% from April 2023.
  • The threshold at which individuals begin paying stamp duty land tax will be doubled, increasing from £125,000 to £250,000. For first-time buyers, the threshold will be set at £425,000.
  • The planned hike in corporation tax rates from 19% to 25% has been discarded.
  • The 1.25% increase in National Insurance, originally slated for implementation on November 6, 2022, will be reversed.
  • Over 40 new investment zones will be introduced in England, featuring relaxed planning regulations and reduced business taxes.
  • VAT-free shopping privileges will be extended to overseas visitors.

In addition to these measures, various duty cuts, the removal of the cap on bankers’ bonuses, and other proposed changes are on the horizon.

Should you require further information regarding any of the aforementioned updates, please feel free to reach out to your designated point of contact or utilize the contact details provided below.