The Chancellor of The Exchequer Jeremy Hunt has today, Monday 17 October 2022, brought forward a number of measures from 31 October’s Medium-Term Fiscal Plan.
In his statement the Chancellor announced a reversal of almost all of the tax measures set out in the Growth Plan that have not been legislated for in parliament.
The following tax policies will no longer be taken forward:
- Cutting the basic rate of income tax to 19% from April 2023. The basic rate of income tax will therefore remain at 20% indefinitely.
- Cutting dividends tax by 1.25 percentage points from April 2023. The 1.25 percentage points increase, which took effect in April 2022, will now remain in place.
- Repealing the 2017 and 2021 reforms to the off-payroll working rules (also known as IR35) from April 2023. The reforms will now remain in place.
- Introducing a new VAT-free shopping scheme for non-UK visitors to Great Britain.
- Freezing alcohol duty rates from 1 February 2023 for a year.
Energy bills support review
The Energy Price Guarantee and the Energy Bill Relief Scheme are supporting households and businesses with rising energy costs, and the Chancellor made clear they will continue to do so from now until April next year.
However, looking beyond April, a treasury-led review will be launched to consider how to support households and businesses with energy bills after April 2023.
For further information please select the following link Chancellor brings forward further Medium-Term Fiscal Plan measures - GOV.UK (www.gov.uk)
Rebecca Evans MS, Minister for Finance and Local Government: Written Statement: Welsh Government Response to the Chancellor's Statement on the Medium-Term Fiscal Plan please select the following link Written Statement: Welsh Government Response to the Chancellor's Statement on the Medium-Term Fiscal Plan (17 October 2022) | GOV.WALES