Chancellor unveils tax cuts
By DTA | 23rd September 2022 | News
Chancellor Kwasi Kwarteng has unveiled tax cuts in today's Mini-Budget:
Income tax from April 2023
Cut in basic rate of income tax from 20% to 19%.
One single higher rate of income tax of 40%.
Cancellation of National Insurance rise and Health and Social Care Levy from 6 November 2022 removing the temporary 1.25% increase for the remainder of the 2022-23 year.
The 1.25% Health and Social Care Levy will not come into force as a separate tax from 6 April 2023 as previously planned.
The planned rise has been cancelled, keeping it at 19%.
The nil rate band will be doubled from £125,000 to £250,000.
First time buyers, who will now pay no stamp duty up to £425,000.
The Chancellor also set out plans to tackle the high cost of energy:
Energy Price Guarantee for households
This will limit the the unit price that consumers pay for electricity and gas. For the next two years the annual household bill will be £2,500 for a typical household saving at least £1,000 based on current prices.
Energy Bill Relief Scheme for business
Providing a price guarantee equivalent to the one provided for households, halving the cost of business energy bills, reducing peak inflation by about 5 percentage points.