What The Government’s Mini-Budget Means For You

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Today the Chancellor entered the House of Commons detailing his mini-budget. Discussing the new wave of economic measures that are to be introduced by the Government was on the agenda. Kwasi Kwarteng explained how the Government is to make “difficult decisions” in order to achieve economic growth and prosperity. As a result of this, the rejuvenation of the UK’s economic state is not something that will happen overnight.

Kwasi told MPs that his main priorities are: “Reforming the supply side of the economy, maintaining a responsible approach to public figures, and cutting taxes to boost growth”.

Here is everything you need to know about the Government’s mini-budget and how it will affect you.

Stamp Duty

The Government has announced a cut in stamp duty land tax. This is amazing news for both long-time investors and first-time buyers. The limits have increased from £125,000 to £250,000 for repeat buyers and further, from £300,000 to £450,000 for first-time buyers. If you are wanting to invest in property you will now pay less tax.

It is time to act now when concerning your investment in property. As a result of the stamp duty cuts, house prices will evidentially rise in the future.

Income Tax

Kwasi further announced the cut in income tax, setting the base rate to 19p a year from April 2023. This is great news as it means that less money will be taken out of your personal and alternate income sources. The increase in April will allow for a large benefit to the entire country’s economy. The cut next year will “see a tax cut for over 31 million people in just a few months”. This will allow for the UK to stand as a country with one of the most pro-growth and competitive income tax systems globally.

Health & Social Care Levy

The Health and Social Care Levy, introduced under Boris Johnson’s Government is to be entirely scrapped. The Government disclosed today that “people should keep more of the money they earn”, incentivising the working world further through the budget. Cancellation to the rise in National Insurance contributions and its almost immediate implementation confirmed.

Alcohol Duty

The scheduled Alcohol Duty increase has been withdrawn. Announcing this allows for a freeze on alcohol duty for another year. This means that consumers won’t pay as much for alcoholic drinks at the shop compared to the scheduled increase.

The team here at LPC Invest understands that these are testing and complex times. Our Property Investment experts are here to help guide you through your property journey and answer any questions you may have. We aim to provide all of our clients with up-to-date information and expert advice. Contact us today to discuss what the stamp duty increase means for you.

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