Further embarassing U-turns on the Mini-budget 2022 Shipleys Tax Advisors

THE EMBARASSING farce continues at Westminster with more twist and turns than reality TV. The PM Liz Truss has today overseen more U-turns to her now defunct flagship fiscal policy – the Mini-BUdget 2022.

Here at Shipleys Tax we look at the new merry-go-round of announcements made today. Quite how long these policies will last is anyone’s guess.

NEW Summary Budget measures – 14 October 2022

  • Income tax
    • 45% Additional rate abolished (40% top rate now) SCRAPPED – 45% top tax rate to be reinstated
    • Basic rate cut to 19% (from 20%) – RETAINED FOR NOW
  • NIC – April 2022 increase in NIC reversed from 6 November and Health & Social Care Levy scrapped: RETAINED
  • Corporation tax to remain at 19% – planned 2023 increase to 25% cancelled SCRAPPED – Rise to 25% reinstated
  • Off payroll working/IR35 – previous legislative changes to be repealed from April 2023 – RETAINED
  • Introduction of VAT-free shopping for overseas visitors – RETAINED
  • New “Investment Zones” with enhanced tax reliefs and relaxed planning frameworks – RETAINED
  • Removal of cap on bankers’ bonuses – – RETAINED
  • SEIS and CSOP limits to be increased. EIS and VCT reliefs will be extended beyond 2025 – RETAINED
  • Annual Investment Allowance to stay at £1m for capital allowances – RETAINED
  • No stamp duty on first £250,000, for first time buyers that rises to £425,000 – comes into operation today- RETAINED

All policies subject to change. Further detail to follow.