As has been widely reported, a number of the Mini Budget proposals (summarised in our recent Tax Blog) have been scrapped.  The new Chancellor of the Exchequer Jeremy Hunt announced these measures claiming that they are estimated to raise £32 billion in taxes every year.  More tax rises and spending cuts are expected to be announced by the Chancellor on 31 October which will be accompanied by Office of Budget Responsibility forecasts.

These include:

  • the proposed removal of the 45% additional rate of UK income tax from 6 April 2023
  • the proposed reduction of the basic rate of UK income tax from 20% to 19% from 6 April 2023
  • the proposed reduction in the UK dividend income tax rate by 1.25% from 6 April 2023
  • the cancelling of the planned increase to UK corporation tax, which will now increase to 25% from 1 April 2023 as had previously been intended
  • the proposed repeal of existing IR35 legislation from 6 April 2023
  • the VAT-free shopping scheme for non-UK visitors.

Some of the previous mini budget proposals that have not been amended include:

  • 0% rate of stamp duty land tax on residential properties applying to the first £250,000
  • the previously planned health and social levy of 1.25% won’t take effect
  • the rate of employee and employer national insurance contributions decreasing by 1.25% from 6 November 2022.

Please contact any member of our UK tax group if you have any queries about how this Budget will affect your business.

Photo of Richard Miller Richard Miller

Richard Miller is a partner in the Tax Department and a member of the Private Funds, Private Equity Transactions and Mergers & Acquisitions Groups.

Richard provides advice on a full range of UK and international tax matters. His practice specifically focuses on all…

Richard Miller is a partner in the Tax Department and a member of the Private Funds, Private Equity Transactions and Mergers & Acquisitions Groups.

Richard provides advice on a full range of UK and international tax matters. His practice specifically focuses on all aspects of the private fund lifecycle.

Richard acts for private fund asset managers in structuring and raising investments funds, structuring carried interest and coinvestment arrangements, establishment and operation of fund management businesses, M&A and investment activity and finance transactions.

Richard also represents institutional investors in structuring and negotiation their private fund investment activity including primary and secondary investments and bespoke transactions.

Photo of Emma C. McDonnell Emma C. McDonnell

Emma McDonnell is an associate in the Tax Department.

Photo of Robert E. Gaut Robert E. Gaut

Robert Gaut is a tax partner and head of our UK tax practice in London.

Robert provides advice on a full range of UK and international tax issues relating to fund formation, private equity deals, finance transactions and private equity real estate matters…

Robert Gaut is a tax partner and head of our UK tax practice in London.

Robert provides advice on a full range of UK and international tax issues relating to fund formation, private equity deals, finance transactions and private equity real estate matters, including experience with non-traditional equity transactions, such as debt-like preferred equity and co-investments for private credit investors.

Robert is highly-regarded for his ability to provide sophisticated tax advice to many of the world’s preeminent multinational companies, sovereign wealth funds, investment banks and private equity and credit funds. Clients have commented to legal directories that Robert is “really technical and knows his stuff,” and “has a very strong knowledge of the various tax laws, but also presents more innovative techniques and strategies.”

He is consistently recognized by Chambers UK and The Legal 500 United Kingdom, and has been recognized by Chambers Global as a leading individual in tax. The Legal 500 comments that Robert has “vast experience in a range of matters, including corporate tax structuring, real estate tax and fund formation.”