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Mini budget – Tax changes scrapped.

With the vast number of changes and speculation associated to the mini budget, we send around the most recent changes made on the 17th.


  • The planned 1p cut in income tax will be deferred “indefinitely”. The Treasury advises this will save £6bn a year.
  • Corporation tax will rise to 25% from 19% in April.
  • A planned 1.25% cut to dividend tax has been abandoned. In the mini-Budget, Mr Kwarteng pledged to reverse a rise in dividend tax brought in by Rishi Sunak last April. The Government expects to save around £1bn a year by maintaining the tax at a higher rate.
  • A freeze on alcohol duties has been scrapped. Ms Truss had planned to freeze the cost of booze from February next year. The about turn is worth approximately £600m a year.
  • Changes to IR35 tax rules has been axed.
  • VAT free shopping for tourists has also been ditched, which will save around £2bn a year.

Energy support

  • The energy price guarantee will only remain universal until April. It will then become targeted and capped, meaning it will be limited to just some households from then on. Under original plans, it was supposed to be a universal support package lasting two years.
  • The Treasury said it would be “irresponsible” for the government to continue “exposing the public finances to unlimited volatility in international gas prices”.
  • Ministers will launch a review to consider how to support households and businesses with energy bills after April 2023.
  • It said the objective of the review is “to design a new approach that will cost the taxpayer significantly less than planned whilst ensuring enough support for those in need”.

We trust this summary is of benefit; we will update you further, if/when more major changes are made…  The information in this communication is not intended to provide advice.  If advice is required, we are here to help and support your needs.  Simply get in touch and we will do our very best to assist you.

Best Wishes

Richard and the Best Price FS Team

Advice: Simply click here to get in touch if you wish to receive regulated advice in relation to the ‘suitability’ of the plans to meet your investment needs.