Against a backdrop of rising inflation, in his Spring Statement, the Chancellor announced a cut in fuel duty for petrol and diesel as he sought to ease the impact of rising prices for households and businesses.
Some of the key points the Chancellor addressed included:
- Increase in the National Insurance threshold – To align the starting thresholds for income tax and National Insurance contributions (NICs), the threshold will increase from 6 July 2022 from £9,880 to £12,570.
- Income tax reduction – The Chancellor announced the reduction in the basic rate of income tax for non-savings, non-dividend income for taxpayers in England, Wales and Northern Ireland to 19% from April 2024.
- Fuel duty – Fuel duty for petrol and diesel is cut by 5 pence per litre across the whole of the UK. This measure took effect from 6pm on 23 March 2022 and is in place for 12 months.
- VAT on energy saving materials – The Chancellor announced a UK wide, time-limited zero rate of VAT from April 2022 for the installation of energy saving materials.
Our summary provides a detailed overview of the key updates and announcements given during the Chancellor’s briefing. We also take a step back to review the proposed changes in order to provide you with information most likely to have an impact on you and/ or your business.
If you have any questions about the summary’s contents or how any aspects of your tax and financial planning may be affected by the Budget, please speak to your relationship partner.
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