Mini Budget Reversal

Published 20th October 2022

For those of you that have managed to avoid the news for the last couple of weeks the mini-budget speech on 23 September, by the then-new Chancellor Kwasi Kwarteng, is now largely irrelevant.

Prime Minister Liz Truss fired the Chancellor on 14 October and U-turned on the planned reversal of the increase to Corporation Tax from April 2023.  Jeremy Hunt was appointed as the replacement Chancellor later that day.  Jeremy Hunt made an emergency statement on 17 October reversing the majority of the policies in his predecessor’s mini-budget less than a month prior.


There was a further Medium-Term Fiscal Plan to be announced by the Government on 31 October 2022, however, given the announcement that Liz Truss has resigned this may be changed shortly.

To summarise, therefore, the current position including the changes announced up to and including 17 October are as follows:

Income Tax


Corporation Tax

Reduction of Corporation Tax to 19% from April 2023 – abolished now once again rising to 25% as previously planned.

The temporary extension of the Annual Investment Allowance threshold to £1m until 31 March 2023 will be made permanent. It had previously been due to reduce to £200,000 on 1 April 2023 but will now remain at £1m indefinitely.



VAT free shopping scheme for tourists visiting the UK - abolished


IR35 Reform

Repeal of IR35 Off-payroll Working Rules introduced in 2017 and 2021 – abolished - existing rules will remain in place.


National Insurance Contributions (NIC) & National Insurance Levy


Stamp Duty Land Tax


Investment Zones

The Government is still in discussions with 38 local authorities to establish investment zones in England.


Equity Incentives

The SEIS limits have increased from April 2023 as follows:

The company share option plan (CSOP) limit that allows businesses to offer employees share options is being raised from £30,000 to £60,000 from April 2023.


If you have any queries please contact our tax department on 01254 688100.

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