{"id":3509,"date":"2022-09-23T13:12:22","date_gmt":"2022-09-23T13:12:22","guid":{"rendered":"http:\/\/www.wealthatwork.co.uk\/jpm\/2022\/09\/23\/mini-budget-commentary-2022\/"},"modified":"2022-10-25T09:59:33","modified_gmt":"2022-10-25T09:59:33","slug":"mini-budget-commentary-2022","status":"publish","type":"post","link":"https:\/\/www2.wealthatwork.co.uk\/jpm\/2022\/09\/23\/mini-budget-commentary-2022\/","title":{"rendered":"Mini-budget commentary 2022."},"content":{"rendered":"
[vc_row][vc_column][vc_single_image image=”10409″ img_size=”full”][\/vc_column][\/vc_row][vc_row][vc_column][vc_empty_space][vc_column_text]Following the government shake-up in the wake of Liz Truss taking over the reins as Prime Minister, the new Chancellor Kwasi Kwarteng has today delivered his first \u2018mini\u2019 budget.<\/p>\n

The budget has been delivered as a \u2018growth plan\u2019 as the UK tackles high inflation and climbing interest rates with the aim of achieving trend growth in the economy of 2.5%.\u00a0 The chancellor said the government will do that by expanding the supply side of the economy through tax incentives and reform – “That is how we will turn this vicious cycle of stagnation into a virtuous cycle of growth.”[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]National Insurance<\/strong><\/p>\n

In two early announcements yesterday, Mr Kwarteng has cancelled Rishi Sunak\u2019s 1.25% rise in National Insurance (NI) and is also scrapping the \u2018health and social care levy\u2019 that was due to replace it in April next year.\u00a0 The reduced NI rates will take effect from 6 November.<\/p>\n

Yesterday\u2019s statement also confirmed the reversal of the 1.25% increase to income tax on dividends which was introduced from April.\u00a0 The reversal will take effect from April 2023.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Dividend tax<\/strong><\/p>\n

The new dividend tax rates, which will apply across the UK, are:[\/vc_column_text][vc_single_image image=”10404″ img_size=”full”][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Income tax<\/strong><\/p>\n

As heavily rumoured, the planned cut in the basic rate of income tax from 20% to 19% has been brought forward to next tax year (April 2023) from April 2024.\u00a0 And in a surprise announcement, the chancellor is also abolishing the top \u2018additional rate\u2019 of income tax which is currently 45% and paid by those earning over \u00a3150,000 in England, Wales and Northern Ireland. The additional rate for savings and dividends will also be removed and this change will apply UK-wide. \u00a0As the additional rate of income tax will be removed, current additional rate taxpayers will also benefit from the Personal Savings Allowance of \u00a3500 for higher rate taxpayers.<\/p>\n

Note<\/strong> – this could have some impact on any tax relief you get on pension contributions and Gift Aid donations.\u00a0 However, a four-year transition period for Gift Aid relief will apply, to maintain the income tax basic rate relief at 20% until April 2027. There will also be one-year transitional period for Relief at Source (RAS) pension schemes to permit them to continue to claim tax relief at 20%.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Stamp Duty<\/strong><\/p>\n

To boost the housing market, cuts are to be made to the Stamp Duty tax paid in England and Northern Ireland.\u00a0 The threshold before Stamp Duty is paid is raising from \u00a3125,000 to \u00a3250,000.\u00a0 First-time buyers currently pay no stamp duty on the first \u00a3300,000 and that will be raised to \u00a3425,000.\u00a0 “And we\u2019re going to increase the value of the property on which first-time buyers can claim relief, from \u00a3500,000 to \u00a3625,000” he says, effective from today.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Other duties<\/strong><\/p>\n

And finally, the planned increases in the duty rates for beer, cider, wine and spirits will all be cancelled.[\/vc_column_text][\/vc_column][\/vc_row]\n <\/div> ","protected":false},"excerpt":{"rendered":"

Following the government shake-up in the wake of Liz Truss taking over the reigns as Prime Minister, the new Chancellor Kwasi Kwarteng has today delivered his first \u2018mini\u2019 budget.<\/p>\n","protected":false},"author":1,"featured_media":3576,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,5],"tags":[],"_links":{"self":[{"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/posts\/3509"}],"collection":[{"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/comments?post=3509"}],"version-history":[{"count":4,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/posts\/3509\/revisions"}],"predecessor-version":[{"id":3516,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/posts\/3509\/revisions\/3516"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/media\/3576"}],"wp:attachment":[{"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/media?parent=3509"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/categories?post=3509"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.wealthatwork.co.uk\/jpm\/wp-json\/wp\/v2\/tags?post=3509"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}