23rd March 2022
The Chancellor Rishi Sunak delivered his Spring Statement earlier this afternoon, at this troubled time, and with inflation at its highest rate in 30 years. The Statement was intended, not as a ‘full Budget’ but as an economic update.
However, given the current significant increases to the cost of living, the Chancellor did include the following tax measures:
- National Insurance: increase to the starting threshold of £3,000 (to £12,570), from July 2022, to equalise the National Insurance and Income Tax thresholds
- Employment Allowance (for National Insurance) for small businesses: increase to £5,000 from April 2022
- Income Tax: the basic rate will be cut from 20% to 19% from 2024
- Fuel duty cut by 5p per litre, from 18:00 this evening until March 2023
- Energy: installation by households of heat pumps, solar panels and insulation will suffer 0% VAT
- Energy: the household support fund, which provides councils with funds to support vulnerable households, is to be doubled
- The Government is to publish a Tax Plan, to reduce and reform taxes in this Parliament
- R&D tax credits and business investment: reforms to be announced in the Autumn Budget
Further details to follow in our full summary.
Please contact Katharine Arthur, Partner with any queries.