Income tax
Income tax rates
The Government had previously announced that there would be a cut in the basic rate of income tax, from 20% to 19%, from April 2024. This was to be accelerated so that it took effect from April 2023. However, whilst the Government aims to proceed with the cut in due course, this will only take place when economic conditions allow and a change is affordable. The basic rate of income tax will therefore remain at 20% indefinitely.
At the Mini Budget on 23 September the Government announced a plan to abolish the 45% additional rate of income tax from April 2023. However, it was announced on 3 October that the Government would not proceed with the abolition of the 45p tax rate.
