Which tax measures are staying (and which are going)?

Chancellor Jeremy Hunt has announced a reset of government fiscal policy, reversing ‘almost all the tax measures’ from the mini-Budget.

Summary

In his statement on Monday 17 October 2022, Chancellor Hunt announced that ‘almost all’ tax measures proposed in the mini-Budget would be reversed, other than those for which legislation had already been introduced.

The following measures will now not be going ahead:

• Scrapping of the 45% additional rate of income tax
• Reduction in the basic rate of income tax. The basic rate will instead remain at 20% ‘indefinitely’ until economic circumstances allow for a cut.
• Cuts to dividend tax rates. The 1.25 percentage point increase which took effect in April 2022 will remain in place
• Removal of the 2017 and 2021 off-payroll working rules. The reforms will remain in place
• Introduction of a VAT retail scheme for overseas visitors
• Freeze on alcohol duty rates. The alcohol duty review will continue as planned

The following changes are going ahead:

• Scrapping of the health and social care levy (and associated NICs increases)
• Changes to stamp duty land tax rates and bands
• Introduction of a permanent ￡1m annual investment allowance
• Changes to the seed enterprise investment scheme and company share option schemes rules

In response to a question on the introduction of investment zones, the Chancellor said that the policy will be implemented in a way that learns the lessons from other similar models that have been tried in the past.

The Chancellor also announced the formation of a new economic advisory council.

The UK government intends to proceed with its medium-term fiscal plan on 31 October, when ‘further changes to fiscal policy’ are expected.

Source: https://www.gov.uk/government/news/chancellor-brings-forward-further-medium-term-fiscal-plan-measures

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