Revisions to the mini-budget of 23 September 2022

The new Chancellor, Jeremy Hunt, today announced a number of revisions to proposals put forward in the mini-budget of 23 September 2022.

The key changes relevant to remuneration and incentives are:

• the income tax basic rate will remain at 20% until economic conditions allow for it to be cut;
• as already announced, the 45% income tax additional rate will not be abolished;
• there will be no reduction in the rate of tax on dividends (i.e. the ordinary rate, upper rate and additional rate will remain 8.75%, 33.75% and 39.35% respectively);
• as announced on 14 October 2022, the legislated increase in the corporation tax rate to 25% from April 2023 will go ahead; and
• the IR35 reforms introduced in 2017 and 2021 will remain in place.

The government has confirmed that it intends to proceed with:

• the reversal of the increase to national insurance contribution rates and the cancellation of the Health and Social Care Levy; and
• the changes to the Company Share Option Plan

both of which were announced in the mini-budget of 23 September 2022.

Further information on the changes can be found in the HM Treasury announcement published earlier today.