Chancellor Kwasi Kwarteng announced the scrapping of the 45% top rate of income tax for high earners, as well as a one percentage point cut to the basic rate of income tax from 20p to 19p in April 2023, which could drive considerations on when to maximise pension contributions, according to experts.
The cuts were announced during the Mini Budget today (23 September), setting the top rate of income tax for high earners at 40% in a bid to simplify the tax system and make the UK more competitive. The additional rate of income tax applied to earners of £150,000 and over. The government will also bring forward the one percentage point cut to the basic rate of income tax from 20p to 19p in April 2023, 12 months earlier than planned, the chancellor announced. According to a report released alongside the speech, the one percentage point cut to the basic rate of income tax will save £5bn...
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