Editor's PickForexChancellor scraps 45p top rate of income tax

September 23, 2022

Kwasi Kwarteng has announced that he will scrap the top 45p rate of income tax and cut the basic rate of income tax by 1p next year as part of a “bold and unashamed” push for growth.

The chancellor announced £50 billion worth of tax cuts including scrapping the rise in national insurance, freezing corporation tax and cutting stamp duty.

The decision to scrap the 45p rate of income tax, which affects 629,000 people who earn over £150,000, is potentially politically explosive.

Labour is likely to argue that it represents a tax cut for the rich at a time when people are struggling to cope with the cost of living.

Liz Truss and Kwarteng, however, believe it will help incentivise investment in the UK. He will also bring forward a 1p cut in the basic rate of income tax, which was due in April 2024, to next year, a measure that will cost about £5 billion.

Kwarteng also sought to bolster the property market by increasing the threshold at which people start paying stamp duty from £125,000 to £250,000. For first-time buyers the threshold will rise from £300,000 to £425,000.

Kwarteng had already confirmed the reversal of the 1.25 percentage point rise in national insurance payments, which will take effect from November 6. Ministers said it meant 28 million people would be £330 better off next year. The increase had been designed to raise £13 billion a year to fund health and social care.

Leave a Reply

Your email address will not be published. Required fields are marked *

Disclaimer: SmartPeopleMail.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartPeopleMail. All Rights Reserved.

IT'S YOUR OPPORTUNITY OF THE YEAR!
Subscribe for FREE today and get your daily shot of smart news about the Economy and Investing.
We are dedicated to keeping any data we collect from you — safe and secure. Here you can read our privacy policy.