U-Turn on abolition of additional rate of tax (45%)

The Chancellor has announced that the planned abolition of the 45% Income Tax rate will not go ahead. In a significant U-turn following the recent “mini-budget”, the rate was due to be abolished from April 2023. The additional rate for dividends will revert to 38.1%.

Other tax changes, including the reversal of the 1.25% National Insurance increase and the planned increase to Corporation Tax, together with the reduction of the basic rate of Income Tax to 19%, will go ahead.

Please ask your usual haysmacintyre contact for further details on how this will impact you, including on profits from your owner-managed business.