Mini-budget Reversal

New Chancellor Jeremy Hunt has announced that almost all of the recent ‘mini-budget’ tax measures will be reversed.

The Chancellor said, “We will no longer be proceeding with the cuts to dividend tax rates, the reversal of off-payroll working reforms, the new VAT-free shopping scheme for non-UK visitors or the freeze on alcohol duty rates”.

Markets have responded positively to the statement so far as the pound rose and government borrowing costs fell.

There was further news on the Energy price guarantee that will no longer last two years, it will now last until April 2023 and then be reviewed.

The only ‘mini-budget’ survivors are Stamp Duty and National Insurance cuts.

Stamp duty is now paid on the first £250,000 of a property’s value for all buyers in England and Northern Ireland. £425,000 for first-time buyers.

Class 1 and Class 4 National Insurance contributions will be reduced by 1.25% from November and cancelling the introduction of the Health and Social Care Levy as a separate tax from April 2023.

The Chancellor will give more details in a statement to the House of Commons later today.