Fiscal Statement October 2022: At a glance

On 17 October 2022 the Chancellor, Jeremy Hunt, made a fiscal statement reversing almost all tax measures announced at the Mini-budget on 23 September 2022, other than those that have already been legislated.

Mini-budget measures that have already been legislated for and which have not been reversed:

• Reversal of the April 2022 increase in National Insurance rates of 1.25% from 6 November 2022, and the cancellation of the proposed 1.25% Health and Social Care Levy. See National Insurance Contributions rise reversed
• Reductions in Stamp Duty Land Tax (SLDT) thresholds, see Mini-budget 2022: Stamp Duty Land Tax reductions

Other Mini-budget proposals that have not been reversed and will remain:

• Permanent increase in the Annual Investment Allowance limit to £1 million, see Mini-budget 2022: Extension to Annual Investment Allowance.
• Extension of Seed Enterprise Investment Scheme (SEIS) relief investment and gross asset limits, see Mini-budget 2022: Extension of SEIS relief.
  
• Changes to Company Share Option Plan (CSOP) rules, see Mini-budget 2022: Changes to CSOP rules.
• The lifting of the cap on bankers' bonuses.
• The introduction of new Investment zones. See Mini-budget 2022: New Investment Zones.
• The Energy Price Guarantee plan remains but only until April 2023 at which time a Treasury-led review will take place. 

Mini-budget measures that have been reversed:

• Proposed reversal of the April 2022 1.25% increase in Dividend tax rates from April 2023. This means that dividends will now continue to be taxed at current rates, including the 1.25% increase which came into effect on 6 April 2022. Rates will remain at:
  • 8.75%, 33.75%, 39.35%.
  • The s.455 tax rate on loans to participators will remain at 33.75%.
• Reversal of the 2017 and 2021 Off-Payroll Working reforms. Current rules for Off-Payroll Working in the public and private sectors will therefore continue to apply. 
• Reduction in the basic rate of Income Tax by 1% to 19% from April 2023. The rate will now remain at 20% indefinitely until economic circumstances allow for it to be cut.
• VAT-free shopping for overseas visitors.
• Freeze on alcohol duty to February 2023.
• The Prime Minister had already announced on 14 October 2022 that Corporation Tax rates will now increase to 25% from April 2023. See Government reinstates increase to Corporation Tax rates.
• In addition, the previous chancellor Kwasi Kwarteng had already announced a reversal of his Mini-budget proposal to scrap the 45% upper rate of Income Tax. See Chancellor reverses cut to 45% tax rate.

The Chancellor also announced that a new Economic advisory council is being formed to provide expert advice to the government.

The Office of Budget Responsibility (OBR) will publish its economic and fiscal forecast on 31 October 2022 as previously announced alongside the government's fiscal rules.

External link

Chancellor brings forward further Medium-Term Fiscal Plan measures