The stamp duty reform, the tax paid by those who buy real estate, and other tax cuts are expected to be announced by the chancellor today.
Although the government has refused to call his speech a budget, researchers have said his measures will amount to “the biggest tax cut since Nigel Lawson’s 1988 budget”. Our quick guide to the mini budget describes which measures will make you better off and which will make you poorer. It is continuously updated as the speech progresses.
winners
workers
The government has already confirmed it will roll back the 1.5 percentage point increase in national insurance contributions introduced by Mr. Kwarteng’s predecessor, Rishi Sunak.
“We will review the tax system to make it simpler and fairer,” the chancellor said. “We will anchor tax simplification in government,” he added, so the Office of Tax Simplification will be abolished.
contractors
He also promised to reform the hated “IR35” self-employment tax rules.
investors
The increase in tax rates on dividend income, which is related to the increase in national insurance contributions, will also be reversed. The omitted corporate tax hikes also mean that investors who own stocks like more of the profits made by the companies they invest in.
Investors will have the opportunity to put money into more specialized funds by removing a fee cap for certain schemes.
Landlords
Low corporate tax rates also benefit landlords who own real estate through limited liability companies.
Home buyers
Stamp duty reform is expected to lead to lower tax bills for those buying homes, although the details are vague.
the unemployed
The chancellor said unemployed people over 50 would receive additional help, although he did not provide details.
Obligation to drink
The link with inflation is broken.
losers
New buyers
If stamp duty reforms lead to the end of special incentives for first-time buyers, they could face more competition for the homes they want to buy.
Working mothers applying for benefits
Some mothers who work part-time and claim Universal Credit will be forced to work longer hours or risk having their benefits cut.