Chancellor Announcements – 17 October 2022

Chancellor Announcements – 17 October 2022

Chancellor Announcements – 17 October 2022

On 23 September, the markets experienced considerable volatility due to the ‘Growth Plan’ delivered by the former Chancellor, Kwasi Kwarteng.

That made regaining economic confidence an urgent task for the newly appointed Chancellor, Jeremy Hunt, who has delivered a reversal of many of the key tax measures announced in the mini-Budget in a new fiscal statement.

The only measures to survive were changes to Stamp Duty Land Tax (SDLT) thresholds and the cut to National Insurance due on 6 November.

The new announcements at a glance:


Income Tax

As previously announced, the additional rate of income tax will remain in effect.

The Chancellor also cancelled the one penny-in-a-pound cut to the Basic rate, initially brought forward by Kwarteng from April 2024 to April 2023. It will now remain at 20% indefinitely.

Dividend Tax

The 1.25 percentage point increase taking effect from April 2022 will no longer be reversed from April 2023. The current rates of dividend tax will instead remain in effect.

Corporation Tax

As announced by the Prime Minister on Friday, Corporation Tax will not remain at 19% for all companies and instead be levied at 25% for those with profits of more than £250,000 from April 2023.

Those with profits below £50,000 will continue to pay at 19%, while marginal relief will be available to those with profits between £50,000 and £250,000.

Energy Price Guarantee

Originally announced to last for two years, the Energy Price Guarantee for households will now remain in effect until April 2023. A review of The Energy Bill Relief Scheme for businesses will occur before April 2023.

HM Treasury will review these policies to reduce the cost of the measure and make business support more targeted.

IR35/Off-payroll Working Rules

The planned reversal of the 2017 and 2021 reforms to the IR35/Off-payroll Working Rules in public and private sectors from April 2023 is no longer taking place.

It will remain for employers to determine whether a contractor falls within the scope of the rules and should be taxed similarly to an employee.

Alcohol Duty

The planned freeze in Alcohol Duty rates from 1 February 2023 is now cancelled.


National Insurance/ Social Care Levy

The cancellation of the increase in National Insurance from 6 November and the Social Care Levy from April 2023 remains in effect.

Stamp Duty Land Tax (SDLT)

The changes to the Stamp Duty Land Tax (SDLT) thresholds taking effect immediately after the mini-Budget remain in place.

Annual Investment Allowance

This tax relief on plant and machinery will be permanently retained at £1 million, as outlined in the mini-Budget.

Tax-advantageous investment schemes

The Seed Enterprise Investment Scheme and the Company Share Options Plan will also continue to support business investment having been expanded upon in the mini-Budget.

The Chancellor’s announcements may have significant tax planning implications. Contact us for advice about your circumstances and growth plans.