This emergency statement effectively replaces and re-writes the mini-budget.
The basic rate of income tax will remain at 20% until economic conditions allow for it to be cut.
This had been due to drop to 19% from 6 April 2023.
Will remain at the current rates of 8.75% in the basic rate band, 33.75% in the higher rate band and 39.35% in the additional rate band.
They had been due to each drop by 1.25 percentage points from 6 April 2023.
The increased corporation tax rates, already legislated to come in from 1 April 2023, will go ahead. These will take some companies from a 19% rate of corporation tax to 25% or 26.5%.
It had been proposed that corporation tax would remain at a single 19% rate.
The off-payrolling rules will remain into 2023/24 and beyond. This keeps the IR35 compliance burden with medium and large-sized employers.
Energy Price Guarantee
The support for households to cap average annual electricity and gas costs at £2,500 will be reviewed in April 2023.
We had been told that households would receive this support until September 2024.
A VAT-free shopping scheme for non-UK visitors to Great Britain will no longer be pursued.
The following mini-budget announcements remain:
The 1.25% rise in NICs will still be reversed from 6 November and the government will not go ahead with the planned1.25% levy to fund health and social care next year.
The annual investment allowance will remain at £1 million from 1 April 2023, rather than reverting to £200,000.
There are to be more than 40 new “investment zones” in England.
The increased thresholds for Stamp Duty Land Tax in England and Northern Ireland, as implemented from 23 September, will remain in place.
The Energy Bill Relief Scheme for Business will continue to be subject to a governmental review after 31 March 2023. The Chancellor has now said that any support for businesses will be targeted to those most affected, and that the new approach will better incentivise energy efficiency.
On 31 October, Mr. Hunt will present an update on the government’s medium-term fiscal plan. Further changes to fiscal policy are expected to be announced at this time.