Announcement 23rd September 2022
Corporation Tax
The planned rise from 19% to 25% for companies has been cancelled, the rate will remain at 19% for all companies, no matter what the profit.
Super-deduction
Some of the technical provisions for the super-deduction (the 130% first year capital allowance for qualifying plant and machinery assets and the 50% first year allowance for the qualifying special rate assets) will be amended. The super deduction is available from 01 April 2021 until the 31 March 2023.
Annual Investment Allowance
The Government are making the AIA permanent at £1m.
Investment Zones – Designated Tax Sites
We will update you more as we receive this information, tax incentives are still being considered along with the area this would be linked too
Changes in Income Tax Rates
Basic rate of income tax is to reduce from 20% to 19% from 06 April 2023
The additional rate of taxation of 45% is removed from 06 April 2023
Personal Savings Allowance
The HR Personal Saving Allowance of £500 will now apply to all higher rate and additional rate tax payers
Gift Aid
The 20% basic rate of income tax will apply until April 2027 – a four year transition
National Insurance
The increase in the rates of Class 1 primary and secondary Class 1A, Class 1B, Class4 contributions of 1.25% will be reversed from 06 November 2022
Reversal of Dividend Tax Increase
The additional 1.25% increase in dividend tax rates will be reversed as from 06 April 2023 – the date it should have been applied
IR35/ Off Payroll Working
In a significant reversal – from April 2023 the Government have decided to completely cancel the IR35 or ‘off payroll working’ obligations previously placed on end clients. As from April 2023 the onus to decide whether an engagement contract falls inside or outside IR35 will fall on the contractor’s personal service company – reverting to what it was in 2021
Stamp Duty
The nil-rate band that applies to purchases of residential property in England and Northern Ireland will be doubled to £250,000, the threshold for first time buyers will increase to £425,000.
Child Benefit
The Government are looking at also removing the restriction on child benefit being claimed if you earn over £50K – we will keep you updated as soon as we hear anything.
If you want to discuss any of the above regarding the Mini Budget Highlights, then please contact us.
The JSR Team
“Continuing to support our Clients”
accounts@jsrmanagement.co.uk
