UK: Tax relief measures and tax cuts in Chancellor’s “growth plan”
Address high energy costs and inflation and deliver higher productivity and wages
Chancellor’s “growth plan”
The Chancellor of the Exchequer today, 23 September 2022, unveiled a “growth plan” that would aim to address high energy costs and inflation and deliver higher productivity and wages. The plan includes various tax relief measures and certain tax cuts.
According to a government release, the growth plan would:
- Cancel a corporation tax rate increase, keeping the rate at 19%
- Reverse the 1.25 percentage point rise in National Insurance contributions
- Accelerate a basic rate of income tax rate reduction to 19% in April 2023 (one year earlier than planned) for individual taxpayers
- Replace the top individual income tax rate with a single higher rate of income tax of 40%
- Make the annual investment allowance of £1 million permanent, rather than letting it return to £200,000 in March 2023 (i.e., a 100% tax relief to businesses on their plant and machinery investments up to the higher £1 million limit)
- Implement relief related to stamp duty land tax
- Provide sector specific support for pubs and hospitality, including freezing alcohol duty (tax) for another year
The government’s release includes fact sheets on “each of the major issues.”
Read a September 2022 report prepared by KPMG in the Crown Dependencies
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