26/09/2022
Growth Plan 2022
On Friday, a day after the government announced that the Health and Social Care Levy (HSCL) of 1.25% due to be introduced from April 2023 has been cancelled. Also the 1.25 % uplift in National Insurance contributions that was introduced in April 2022 will end on 6 November 2022
The 1% tax cut for basic rate tax payers is being brought forward to April 2023, lowering the basic rate tax from 20% to 19%.
The aditional tax rate of 45% for those fortunate to earn more than £150k a year is being abolished at the same time, meaning there will there will be a single higher rate of Income Tax of 40%.
This includes the additional rate of dividend tax of 39.35% disapearing, and the higher rate dropping to 32.5%.
The Annual Investment Allowance (AIA) will be set at £1 million permanently, originally raised from £200,000 as a temporary measure. This is good news if your business is looking at investing in some new plant & machinery.
For the property investors out there, the nil-rate threshold for Stamp Duty Land Tax (SDLT), is being doubled from £125,000 to £250,000. First time buyers, the level in which SDLT will become due is increasing from £300,000 to £425,000 and allowing buyers to access this relief on property purchases up to £625,000.
Probably a more controvertial tax cut, but the planned increase to the Corporation Tax (CT) main rate from 19% to 25% is also not going ahead. This will enourage corporations to invest in the UK, being the lowest of the G20, and create more job opportunities.
