As part of a wide ranging ‘mini budget’ of 30 fiscal measures designed to reverse a “vicious circle of economic stagnation”, the UK Government’s Chancellor has today announced a permanent reduction in Stamp Duty in England and Northern Ireland, raising the nil rate band from £125k to £250k with immediate effect.
The zero-rated threshold for first time buyers will rise from 300k to 425k and the value of the property on which first-time buyers can claim relief increases from £500k to £625k.
Second property and overseas surcharges continue to apply.
Kwasi Kwarteng MP, flanked by the Prime Minister and Simon Clarke Secretary of State for Levelling Up, Housing and Communities, said that the planned National Insurance increase of 1.25% due to come into force on 6 November, has been reversed to help employers trying to keep pace with wage growth. Likewise, the planned increase in corporation tax from 19% to 25% next year has also been scrapped.
The basic rate of income tax will be cut to 19% in April 2023, one year earlier than planned.
Yesterday, UK interest rates were increased by 0.5% to 2.25% and earlier this week, the Secretary of State for Business, Energy & Industrial Strategy committed to cap energy prices for all businesses.
The Growth Plan for a New Era focuses on tax cuts as well as enterprise zones with preferable business and stamp duty rates with today’s announcement referencing areas of Tees Valley, West Midlands and Norfolk along with the intention to work with the devolved authorities to try to expand these benefits.