Mini-budget 2022 — legal comment
Our experts analyse this week's mini-budget
Chancellor Kwasi Kwarteng, has announced a sweeping package of measures in his mini-budget this week.
Commenting on the changes to corporate and personal taxation, Hadyn Rogan, Partner and tax law specialist at Weightmans LLP, said:
“There was a significant amount of speculation around what Liz Truss would do to taxes. Some of this week’s announcements were unsurprising, including the reversal of the increase to National Insurance, but others were less so.
“The Government hopes that the reversal of the planned increase in corporation tax will stimulate further growth in the UK economy and help to attract inward investment by keeping the UK corporation tax rate competitive in comparison to other G7 and European countries. Meanwhile for individuals, the changes to dividend tax announced yesterday will have an effect on many savers receiving dividends from their investment portfolios who will no longer face the increased taxation on their investment income.
“Although, these changes are not insignificant, looking ahead to the October Statement, businesses will be watching for detail on what support will be offered once the energy support package announced on Wednesday, while individuals will likely be expecting further measures to help alleviate their personal tax burdens. For both, a cut in VAT on fuel bills would be welcomed.”
Commenting on the changes to stamp duty and low-tax investment zones, Karl Jackson, head of built environment at Weightmans LLP, said:
“Although, this was deemed a ‘mini-budget’, it ended up being jam-packed with announcements. For the property industry he introduction of low-tax investment zones and stamp duty cuts will likely be welcomed by many, but it is unlikely that they will do enough to address the lack of available housing across the UK’s regions in the short to medium term.
“That said, the announcements around investment into the infrastructure of our towns and cities and the relaxation and simplification of some planning regulations, should help to stimulate development and the housing market more generally in the long-term.
“We look forward to seeing fuller Statement in October to better understand the impact on both homeowners, prospective or current, and developers.”