The Growth Plan 2022: Highlights

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The Growth Plan 2022: Highlights

September 30th, 2022, Legal Updates, News

The Chancellor of the Exchequer, Kwasi Kwarteng, delivered the Growth Plan 2022 on 23 September 2022. The document is setting out the plans to address energy costs and assist businesses and households.

Below is a summary of the key announcements for the private client world.

Income tax
  •  The basic rate of income tax will be reduced from 20% to 19%.
  • The additional rate of income tax (currently 45%) will be abolished, leaving a single higher rate of 40%.
  • From 6 April 2023 the dividend ordinary rate will be reduced to 7.5%. The dividend upper rate will be reduced to 32.5%. The dividend additional rate will be removed.
 Stamp duty land tax
  • The residential nil rate band will be doubled to £250,000.
  • The level first time buyers start paying stamp duty will be increased from £300,000 to £425,000.
  • First time property buyers will have access the relief when they buy a property costing up to £625,000 instead of £500,000.
National Insurance Contributions
  • The 1.25% increase will be reversed from 6 November 2022.
  •  Thehealth and social care levy set out in the Health and Social Care Levy (Repeal) Bill and will be cancelled.
  • The NICs thresholds that were increased earlier in 2022 will be maintained.
  • The government will continue to support the Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCT).
Seed Enterprise Investment Scheme (SEIS)
  • The maximum amount a company can raise via SEIS investment will be increased from £150,000 to £250,000
  • The gross asset limit will be increased from £200,000 to £350,000.
  • The age limit for eligible companies will be increased from two to three years.
  • The annual investor limit will be increased from £100,000 to £200,000.
Corporation tax
  •  The rise in the main rate of corporation tax from 19% to 25% scheduled for April 2023 has been abolished.

If you have any questions, please do not hesitate to contact James Cohen directly on [email protected] or 0207 822 2257

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