"A cycle of growth": What does the mini budget mean for businesses?

“A cycle of growth”: What does the mini budget mean for businesses?

Delivering a mini budget today as part of the new Government's "bold plans to grow the economy", Chancellor Kwasi Kwarteng has unveiled several tax reforms to encourage a "virtuous cycle of growth".

Here are some of the key considerations for businesses included in the announcement:

Investment zones
Over 40 new investment zones will be created, with tax breaks to encourage business development and investment.

Corporation Tax
The scheduled increase for next year has been cancelled, seeing rates remain at 19% rather than increase to 25%.

Annual investment Allowance
This will not fall as previously planned, and instead will remain permanently at £1m.

SEIS/EIS/VCT/EMI limits
The Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCT) will be extended beyond 2025, while the limits on the SEED Investment Scheme (SEIS) and company share option plans will increase.

IR35
Off payroll working rules, or IR35, are due to be simplified, with the reforms of recent years due to be repealed.

VAT-free shopping
VAT-free shopping for overseas visitors has been introduced.

Alcohol duty rates
Scheduled increases in the duty rates for alcohol will be cancelled.

National Insurance
The chancellor reconfirmed plans to reverse the National Insurance increase of 1.25% and increase in divided rates from 6th November 2022.

Income Tax
The basic rate of income tax will also be cut to 19% in April 2023, and the additional 45% rate abolished.

Stamp Duty
From today in England, the threshold for stamp duty to apply to a property has been changed from £125,000 to £250,000.

First time buyer's relief will rise from £300,000 to £425,000, and the value of properties upon which first time buyers can claim relief will also increase from £500,000 to £625,000.

Fleur Riggs, Head of Specialist Tax at GS Verde Tax, said: "The mini budget set out today by the new Chancellor focused on encouraging Britain's growth and potential, with a priority of making the country more globally competitive.

"GS Verde Group can help businesses navigate these changes, supporting them to operate as efficiently as possible within current tax policies and take advantage of the reliefs available."

Talk to our team about the changes and how they affect your business: hello@gsverde.group.

Combining legal, tax, finance, and communications, the GS Verde Group are the business-focused experts in getting deals done.

Testimonials

"I feel valued as a client. I get rapid responses to any emails or calls; and I must say the GS Verde Accountants team are brilliant. I already feel freer to concentrate on setting the strategic direction for the business"

Mark Burland, Director, First Class Comms Ltd t/a FCC

"There are lots of accountancy firms that we could have chosen from to work with however there was a distinct difference in the approach and service level that was offered by GS Verde Accountants."

Kevin Dunn, Director, UKMD Ltd

"They are our finance team; and they are on top of our accounts and our financial strategy. We rely on their expertise to help us drive our business forward and they meet every aspect of our needs"

Mike Stephens, Director, English County Contracts Ltd

"GS Verde Accountants have been invaluable during an important and rapid growth phase of our business."

Nick & Jon Bird, Partners, SquareBird

"We know that we cannot get a better or more reliable service – we don’t even have to think about it. GS Verde Accountants go beyond the call of duty"

Jonathan Gould, Managing Director, GWorks Ltd

"Worth absolutely every single penny – this is the single best decision we have made in the last year. For every single person we have spoken to at GS Verde Accountants – nothing is too much."

Hannah Kennard, Director, AK Plant Services Limited