The rapid unwinding of most of September’s so-called mini-Budget has important implications.
Gone are the days when a Chancellor made only two set piece announcements each year and, for the remaining days of the year, tax remained generally out of the headlines. 2022 has seen four Chancellors (at the time of writing) and plenty of parliamentary statements, but no formal Budget. September and October contained a plethora of announcements and un-announcements that left even the tax nerds struggling to keep up. If you are not one of those nerds, the following list of what is and is not happening may be helpful:
Away from the tax arena, but nevertheless relevant here because of its cost, the Energy Price Guarantee, which originally capped average domestic utility bills at £2,500 a year until October 2024, will now end in March 2023. From April 2023, a more targeted scheme will be introduced, which Chancellor Jeremy Hunt says ‘will cost the taxpayer significantly less’.
As we have observed over the last few turbulent months, tax rules can be dizzyingly complex, making sound personal tax planning all the more crucial.