Chancellor unveils biggest tax cuts for decades and his good news for booze drinkers FindSexyJobs

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FSJ News Updates,

The Chancellor unveiled his mini budget today – and it’s good news for booze drinkers.

Kwasi Kwarteng unleashed the biggest tax cuts since the 1970s, but only some will apply in Scotland.

Kwasi Kwarteng presented the mini-budget today

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Kwasi Kwarteng presented the mini-budget todayCredit: Alamy

All Scottish earners now pay more income tax than their counterparts in the rest of the UK, thanks to a 1p cut in the basic rate of income tax.

In another tax cut for the rest of the UK – but not Scotland – the top rate of tax on incomes above £150,000 is scrapped from April, falling to 40p.

But to his welcome, Mr Kwarteng announced that the planned rise in duty rates on booze had been scrapped.

Today’s announcement will not affect Scotland’s minimum pricing laws.

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The chancellor said he would introduce an “18-month transition” for wine tax while extending levy relief to help smaller breweries.

And he insisted that “at this difficult time” the Government “will not allow alcohol tax rates to rise in line with the RPI”.

Announcing the measures today, the chancellor said: “Our drive to modernize also extends to alcohol taxes. I have heard the industry’s concerns about the ongoing reforms.

“I will therefore introduce an eighteen-month transitional measure for the wine tax.

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“I will also extend draft relief to smaller kegs from 20 liters to help smaller breweries.

“And in these difficult times, we will not allow alcohol tax rates to rise in line with RPI.

“I can therefore announce that the planned increase in customs duties on beer, cider, wine and spirits will be cancelled.”

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It comes after Nicola Sturgeon said the chancellor’s “morally bankrupt” mini-budget would see the “super rich laughing all the way to the bank”.

She wrote on Twitter: “The super rich are laughing all the way to the actual bank (although I suspect many of them will also be horrified by the moral bankruptcy of the Tories) while the number of others relying on food banks is increasing – all thanks to incompetence and recklessness of this failed British government.”

MINI CALCULATION FOR 2022 – MAIN POINTS

  • It will reduce the basic rate of income tax in the rest of the UK – but not in Scotland – by 1 cent from next April. This means that all Scottish earners will now pay more income tax than their counterparts in the rest of the UK. Previously, 54 per cent of all taxpayers in Scotland – those on less than £27,850 – faced slightly lower tax bills.
  • In another tax cut for the rest of the UK – but not Scotland – the top rate of tax on incomes above £150,000 is scrapped from April, falling to 40p, with Scotland’s top rate remaining at 46p in the pound. Experts say the move will help the top one percent of earners.
  • A planned rise in corporation tax to 25 per cent is scrapped – meaning it remains at 19 per cent and will be the “lowest rate in the G20”, the chancellor said.
  • The cap on bankers’ bonuses was lifted eight years after it was introduced in 2014. Under current rules, bonuses cannot exceed twice a banker’s salary unless shareholders agree.
  • For people south of the border only, there is an immediate stamp duty reduction with no tax paid on the first £250,000 of property, or £425,000 for first time buyers. In Scotland, separate land and building transaction tax remains with a different regime starting at two per cent paid from £145,001 to £250,000. In Scotland, first-time buyers pay nothing from the first £175,000.
  • Planned increases in customs duties on beer, spirits, cider and wine are cancelled.
  • The package of energy bills which will cap household and business bills – costing £60bn in the first six months from October – is confirmed following earlier announcements.
  • Investment zones with tax cuts for businesses and relaxed planning regulation – in place in England to begin with, but with a view to introducing similar incentives in Scotland if the Scottish Government is “willing to do so”
  • The health and social care levy – an extra 1.25 percentage points on top of National Insurance – is being scrapped, it was announced on Thursday, saving people £330 a year.
  • VAT-free shopping announced for foreign visitors

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