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CX Abolishes Upper Rate Of Income Tax, 1p Cut To Basic Rate From Apr 2023


Chancellor Kwarteng:"All the bonus cap did was to push up the basic salaries of bankers, or drive activity outside Europe....So we’re going to get rid of it. And to reaffirm the UK’s status as the world’s financial services centre, I will set out an ambitious package of regulatory reforms later in the Autumn."

  • "So I can therefore confirm that next year’s planned increase in Corporation Tax will be cancelled. The UK’s corporate tax rate will not rise to 25% - it will remain at 19%.... the Bank Surcharge will remain at 8%.
  • "Yesterday, we introduced a Bill that means the Health and Social Care Levy will not begin next year… it will be cancelled. The increase in Employer National Insurance Contributions and dividends tax… will be cancelled. And the interim increase in the National Insurance rate, brought in for this tax year…will be cancelled."
  • "I can announce that we are cutting stamp duty. "
  • "From April 2023, we will have a single higher rate of income tax of 40 per cent. This will simplify the tax system and make Britain more competitive. It will reward enterprise and work. It will incentivise growth. It will benefit the whole economy and whole country."
  • I can announce today that we will cut the basic rate of income tax to 19p in April 2023 – one year early. That means a tax cut for over 31m people in just a few months’ time. That means we will have one of the most competitive and pro-growth income tax systems in the world.
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