ARTICLE
B GE BINGO AND THE TAX FALLOUT OF TRUSSONOMICS
BY ANDREW WADDELL Managing Partner, Winslows Tax Law
What a year 2022 was –three prime ministers and four Chancellors of the Exchequer……it could be hard to keep track! Besides a leadership challenge, the mini-budget presented by Kwasi Kwarteng on 23 September 2022 caused such an earthquake amongst the financial markets that most of the announcements were reversed within a matter of weeks. So where are we now? The changes originally announced in Kwarteng’s mini-budget included: a reversal to the planned increase of the headline rate of Corporation Tax to 25%, the increase in the 0% band for Stamp Duty Land Tax from £125,000 to £250,000, a reduction of the basic rate of Income Tax to 19%, reversal of the 1.25% National Insurance (NIC) and dividend increase, the abolition of the off-payroll IR35 rules and, more importantly, the abolition of the additional rate income tax band. Following the “Mini-Budget”, the “Autumn Statement” was originally supposed to be merely a ‘Medium Term Fiscal Plan’ following the Office of Budget Responsibility’s economic and fiscal forecast, focussed largely on supply-side policies and addressing economic stability. However, following Kwarteng’s sacking, the new Chancellor Jeremy Hunt needed to turnthe Autumn Statement into a new full Budget which was given on 18 November 2022.
THE LEGAL CORNER MAGAZINE | ISSUE 002 JANUARY '23 | BANKING & FINANCE SPECIAL HB 18
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