Chancellor U-turns on top rate of tax
The decision to scrap the 45% tax rate has been widely criticised amid a cost-of-living crisis. This morning the Chancellor has announced a U-turn. What's the latest?
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Government finally confirms date for capital goods scheme reforms
The government has finally confirmed when long-awaited changes to the capital goods scheme (CGS) will take effect. The reforms, first announced as part of a wider review of VAT simplification, will come into force on 29 July 2026. What does this mean for businesses?
The Chancellor has confirmed that the tax cut will not go ahead, due to the distractions this policy has caused. From 6 April 2023 those earning over £150,000 will continue to pay the top rate of 45% income tax. However, due to other planned tax cuts, those with income over £150,000 will pay just 38.1% income tax on dividends from 6 April 2023 (currently 39.35%), meaning there will still be an incentive (albeit a smaller one) to delay dividends until on or after 6 April 2023.
The Chancellor is set to announce his medium-term fiscal plan on 23 November.
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