Delivering a mini budget today as part of the new Government's "bold plans to grow the economy", Chancellor Kwasi Kwarteng has unveiled several tax reforms to encourage a "virtuous cycle of growth".
Here are some of the key considerations for businesses included in the announcement:
Over 40 new investment zones will be created, with tax breaks to encourage business development and investment.
The scheduled increase for next year has been cancelled, seeing rates remain at 19% rather than increase to 25%. *
Annual Investment Allowance
This will not fall as previously planned, and instead will remain permanently at £1m.
The Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCT) will be extended beyond 2025, while the limits on the SEED Investment Scheme (SEIS) and company share option plans will increase.
Off payroll working rules, or IR35, are due to be simplified, with the reforms of recent years due to be repealed.
VAT-free shopping for overseas visitors has been introduced.
Alcohol duty rates
Scheduled increases in the duty rates for alcohol will be cancelled.
The chancellor reconfirmed plans to reverse the National Insurance increase of 1.25% and increase in dividend rates from 6th November 2022.
The basic rate of income tax will also be cut to 19% in April 2023.
Also, the additional 45% rate will be abolished. *
From today in England, the threshold for stamp duty to apply to a property has been changed from £125,000 to £250,000.
First time buyer's relief will rise from £300,000 to £425,000, and the value of properties upon which first time buyers can claim relief will also increase from £500,000 to £625,000.
Fleur Riggs, Head of Specialist Tax at GS Verde Tax, said: "The mini budget set out today by the new Chancellor focused on encouraging Britain's growth and potential, with a priority of making the country more globally competitive.
"GS Verde Group can help businesses navigate these changes, supporting them to operate as efficiently as possible within current tax policies and take advantage of the reliefs available."
Talk to our team about the changes and how they affect your business: firstname.lastname@example.org.
Combining legal, tax, finance, and communications, the GS Verde Group are the business-focused experts in getting deals done.
*Since this piece was originally published, the Government has reversed this decision.