UPDATE

The majority of the tax measures announced in the mini budget have been reversed.?See summary below of what has been retained and what has been discarded:

MEASURES DISCARDED:

#incometax

- The planned cut in the basic rate of income tax from 20% to 19% from the April 2023 has been scrapped. The basic rate of income tax will remain at its current level of 20%.?The reduction has been put on hold indefinitely?

- The government had already u-turned on the cut of 45% top rate of income tax which now remains in place

#corporationtax

- The proposed corporation tax rise from 19% to 25% which was initially to be scrapped, will now go ahead.?Corporation tax will rise to 25% from April 2023

#dividends

- Dividends will no longer be reduced by 1.25% in April 2023.?The 1.25% which had been added in April 2022 will be retained

#ir35

- The rules which govern off-payroll working which were set to be repealed, will now remain in place. Which means that companies will continue to be responsible for ensuring that contractors pay the right amount of tax.?

MEASURES RETAINED:

#NationalInsurance

- The 1.25% reduction in National Insurance is still planned from 6th November 2022.?The standard employers National Insurance rate will decrease to 13.8% from 15.05% and the standard employees’ National Insurance rate will decrease to 12% from 13.25%.?

#stampduty

- The Stamp Duty Land Tax (SDLT) rates on residential property have been reduced as follows:

o First-time buyers – no stamp duty on first ￡425,000 of the property’s purchase price (which must be ￡625,000 or less)

o All other buyers – no stamp duty on the first ￡250,000 of the property’s purchase price

These changes to Stamp Duty remain in place

Annual Investment allowance (#aia )

- The amount companies can invest tax free, remains at ￡1 million indefinitely

Seed Enterprise Investment Scheme (#SEIS)?

- Companies will be able to raise up to ￡250,000 under the SEIS scheme, an increase from ￡150,000. To allow more companies to use SEIS the gross asset limit will be increased to ￡350,000 from ￡200,000 and the trading age for companies will increase from 2 to 3 years.?The amount that an investor can invest each year will double to ￡200,000. These changes will be effective from April 2023

#Share Option Schemes

- Companies will be able to offer share option schemes also known as Company Share Option Plans (CSOPs) up to a value of ￡60,000 (double current value). HM Treasury stated on 17th October that the CSOP would continue, it is presumed that this statement is intended to mean that CSOP changes will go ahead in April 2023