UK and International Tax news
Autumn Fiscal Statement
Thursday 22nd September 2022
The new Chancellor is expected to make his first fiscal statement on Friday 23 September.
During the Conservative Party leadership contest, Liz Truss, then Foreign Secretary, said she would cut taxes from day one, cut fuel duty by more than by the 5p per litre implemented by the Chancellor Rishi Sunak, reverse the NIC rise, keep corporation tax competitive, and overhaul business rates.
In recent statements, Liz Truss has emphasised the objectives of encouraging investment and growth which are likely to result in significant costs to be funded by large increases in borrowing.
We set out below what the new Chancellor might announce on tax:
- A reversal of the planned increase in corporation tax rate to 25% from April 2023
- An increase in the banking surcharge from 3% to perhaps as much as the previous 8% rate
- New investment incentives to replace the 130% super deduction which ceases on 31 March 2023
- No changes to the windfall tax/energy profits levy on UK oil and gas profits introduced with effect from 26 March 2022 and intended to apply until December 2023
- Reductions to the rates of stamp duty land tax
- Temporary reduction in VAT for hospitality, tourism and agricultural sectors
- Extensions/increases to the 5p cut in fuel duty, due to end in March 2023
- A reversal of the increase in NICs and a possible cancellation of the Health and Social Care Levy
- Unfreezing of, or increases to, income tax thresholds
The firm will be preparing a summary of the main tax changes to be announced by the new Chancellor on Friday 23 September.
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