A couple of weeks ago we highlighted main aspects of the previous chancellors mini-budget. A lot has happened in the house of parliament recently and the new chancellor, Jeremy Hunt reverses most of the mini-budget tax cuts.


Below you can find the updated version from Jeremy Hunts statement.


National Insurance

One of the few things that is staying, is the reversal of the National Insurance social care levy. From 6th November 2022, the extra 1.25% will no longer be added to National Insurance contributions. This means a saving of £330 per year for nearly 28 million people.


Originally the extra 1.25% was introduced to fund the NHS, however, this will now be funded through general taxation.


Income Tax

The biggest reversal is in the rates of income tax. The ex-chancellor said that income tax will be down to 19% from April 2023, however, this will now not go ahead. It will remain at 20% for now.


The abolition of the 45% higher rate income tax has also been reversed. The 45% higher rate income tax band now means that the higher rate earners will pay income tax on earnings over £150,000


Corporation Tax

The reversal on corporation tax for companies means that the increase from 19% to 25% will go ahead after all. This will come into action from April 2023. Only businesses with profits of £250,000 or greater will be taxed at the full 25% rate - about 10% of companies in the UK.


Any companies with profits of £50,000 or lower, will pay at the 19% rate



Rules around the benefit system will remain and unchanged. Benefits can be reduced if people don’t actively search for job commitments. Around 120,000 more people on universal credit to be encouraged to actively seek more work, the over 50’s to be given extra time to work with coaches to help them in the return to work.


What else has been cancelled?

Other measures that have been cancelled include:

·         VAT-free shopping for overseas visitors,

  • A freeze on alcohol duty. Planned increases in the duty rates for beer, cider, wine and spirits will now go ahead
  • Cuts to the tax paid on shareholders' dividends - the increase introduced in April will now stay in place



A typical household using both gas and electricity would pay no more than £2,500 annually for two years the government said. However, the energy price guarantee now only covers this winter. It will be in place until April next year. A review will look at what measures should be put in place after this date.


Stamp Duty

Stamp duty will remain in place. In England, no stamp duty is paid on first £250,000 and for first time buyers, this is increased to £425,000. To check out Wales’ stamp duty rates, please click here


These rules seem like they will stay in place now but, as always, we will keep you up to date with the latest

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