{"id":8200,"date":"2022-09-26T10:28:18","date_gmt":"2022-09-26T09:28:18","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/tomd\/?p=8200"},"modified":"2022-09-26T10:28:19","modified_gmt":"2022-09-26T09:28:19","slug":"the-growth-plan-2022","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/09\/26\/the-growth-plan-2022\/","title":{"rendered":"The Growth Plan 2022"},"content":{"rendered":"
\n

\u201cWe need a\nnew approach for a new era\u201d<\/em><\/strong><\/em><\/strong><\/p>\n<\/div>\n\n

\n

A day after Bank Rate rose from 1.75% to 2.25%, Chancellor Kwasi\nKwarteng delivered his first statement on 23 September, <\/strong>outlining a\nseries of tax cuts and measures aimed at<\/strong> boosting economic\nactivity and growth. <\/strong><\/em><\/strong><\/p>\n<\/div>\n\n

\n

Moving straight to the\npressing matter of energy costs, Mr Kwarteng reiterated steps taken to support\nfamilies and businesses, including the Energy Price Guarantee, the Energy Bill\nRelief Scheme and the Energy Markets Financing Scheme.<\/p>\n<\/div>\n\n

\n

With a keen growth focus, the Chancellor professed, \u201c<\/em>We need a new\napproach for a new era,\u201d <\/em>before announcing a Growth Plan built around three key priorities: reforming the supply-side of the\neconomy, maintaining a responsible approach to public finances and cutting\ntaxes to boost growth. A\n\u2018Medium-Term Fiscal Plan\u2019 will be outlined in the coming months and the Office\nfor Budget Responsibility (OBR) will be publishing an economic and fiscal\nforecast before the end of 2022. In the\nmeantime, the government has set a target of reaching a 2.5%\ntrend growth rate for the UK economy, with a tax simplification theme front and\ncentre. The key\nannouncements were:<\/p>\n<\/div>\n\n

\n

National\nInsurance<\/strong><\/em><\/strong><\/p>\n<\/div>\n\n

\n

A reversal of last April\u2019s National Insurance\ncontribution rise was confirmed by the government on 22 September. The 1.25\npercentage point increase will be reversed from 6 November. The planned Health\nand Social Care Levy, due to replace the National Insurance rise as a\nnew standalone tax from April 2023, has also been cancelled.<\/p>\n<\/div>\n\n

\n

Stamp Duty Land\nTax (SDLT)<\/strong><\/strong><\/p>\n<\/div>\n\n

\n

The\nChancellor announced a reduction in SDLT in England and Northern Ireland,\nraising the residential nil-rate threshold from \u00a3125,000 to \u00a3250,000, with\nimmediate effect, and First Time Buyers\u2019 Relief from \u00a3300,000 to \u00a3425,000. He\nalso increased the maximum amount that an\nindividual can pay for a home, while remaining eligible for First Time Buyers\u2019\nRelief, from \u00a3500,000 to \u00a3625,000. As SDLT is devolved in Scotland and Wales, the Scottish and Welsh\nGovernments will receive funding through an agreed fiscal framework to allocate\nas they see fit.<\/p>\n<\/div>\n\n

\n

Income Tax<\/strong><\/p>\n<\/div>\n\n

\n

The basic rate of Income Tax will be\ncut to 19% in April 2023 \u2013 one year earlier than previously planned. At\npresent, people in England, Wales and Northern Ireland pay 20% on annual\nearnings between \u00a312,571 and \u00a350,270; different rates apply in Scotland. The highest rate of Income Tax\n(the \u2018additional rate\u2019 paid at 45% by those earning over \u00a3150,000) will be\nabolished. From April 2023 there will be a single higher rate of Income Tax of\n40%.<\/em><\/p>\n<\/div>\n\n

\n

Dividend Tax<\/strong><\/strong><\/p>\n<\/div>\n\n

\n

The government is\nreversing the 1.25 percentage point increase in Dividend Tax rates applying\nUK-wide from 6 April 2023, so the ordinary and upper rates of Dividend Tax will\nrevert to 7.5% and 32.5% respectively. <\/strong><\/p>\n<\/div>\n\n

\n

Business\nmeasures<\/strong><\/strong><\/p>\n<\/div>\n\n

\n
  • The planned rise in Corporation Tax to 25% in 2023\nwill not go ahead; the rate will remain at 19%<\/li>
  • The Annual Investment Allowance,\nwhich is the amount that companies can invest tax free, will be made permanent\nand remain at \u00a31m <\/li>
  • The IR35 rule reforms which govern off-payroll working will be repealed from 6\nApril 2023<\/li>
  • The government intends to establish new Investment Zones in 38 areas in\nEngland, providing businesses with tax incentives and reduced regulation, such\nas fast-tracked planning applications, to drive growth and encourage\ninvestment. There are plans to expand investment zones across Scotland, Wales\nand Northern Ireland<\/li>
  • The cap on bankers\u2019 bonuses has been lifted<\/li>
  • Increasing\nthe generosity and availability of the Seed Enterprise Investment Scheme (SEIS)\nand Company Share Option Plan (CSOP) from April 2023.<\/li><\/ul>\n<\/div>\n\n
    \n

    Other announcements included<\/strong><\/p>\n<\/div>\n\n

    \n
    • Bringing forward reform of the pensions\nregulatory charge cap <\/strong><\/li>
    • Alcohol duty\nrates will be frozen from 1 February 2023<\/strong><\/li>
    • Plans to reform the infrastructure\nplanning system and to prioritise 138 key projects<\/strong><\/li>
    • Universal\n Credit rules will be tightened, leading to a reduction in benefits if people\n don’t fulfil job search commitments<\/li><\/ul>\n<\/div>\n\n
      \n
      • VAT-free shopping\n scheme to be introduced for overseas visitors \u2013 currently in consultation<\/li><\/ul>\n<\/div>\n\n
        \n
        • Tightening union\n legislation, implementing Minimum Service Levels for transport services\n and forcing unions to put pay offers to a vote by their members.<\/li><\/ul>\n<\/div>\n\n
          \n

          As he left the dispatch box the Chancellor concluded, \u201cOur entire focus is on making Britain more globally\ncompetitive\u2026 We promised to prioritise growth. We promised a new approach for a\nnew era. We promised to release the enormous potential of this country. Our\nGrowth Plan has delivered all those promises and more. And I commend it to the\nHouse.\u201d<\/em><\/p>\n<\/div>\n\n

          \n

          It is important to take professional advice before making\nany decision relating to your personal finances. Information within this\ndocument is based on our current understanding of taxation and HMRC rules and\ncan be subject to change in future. It does not provide individual tailored\ninvestment advice and is for guidance only. Some rules may vary in different\nparts of the UK; please ask for details. We cannot assume legal liability for\nany errors or omissions it might contain. Levels and bases of, and reliefs from\ntaxation are those currently applying or proposed and are subject to change;\ntheir value depends on the individual circumstances of the investor.<\/strong><\/p>\n<\/div>\n\n

          \n

          All details are correct at the time of writing (23\nSeptember 2022)<\/strong><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

          \u201cWe need a new approach for a new era\u201d A day after Bank Rate rose from 1.75% to 2.25%, Chancellor Kwasi Kwarteng delivered his first statement on 23 September, outlining a series of tax cuts and measures aimed at boosting economic activity and growth. Moving straight to the pressing matter of energy costs, Mr Kwarteng […]<\/p>\n","protected":false},"author":3,"featured_media":8201,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,39],"tags":[],"hd_content_source":[],"_links":{"self":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/8200"}],"collection":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/comments?post=8200"}],"version-history":[{"count":1,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/8200\/revisions"}],"predecessor-version":[{"id":8202,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/8200\/revisions\/8202"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media\/8201"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media?parent=8200"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/categories?post=8200"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/tags?post=8200"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/hd_content_source?post=8200"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}