In this final edition of Cheylesmore Accountants’ 3-series edition covering Chancellor Kwasi Kwarteng’s mini-budget on 23rd Sept 2022, we will look at the host of reforms to Stamp Duty Land Tax along with measures to alleviate the spiralling energy bills facing businesses and individuals alike.

First time buyers can rejoice at the increased threshold of £425,000 up until which they needn’t pay any Stamp Duty Land Tax. The government also pledging to sell any surplus government-owned land to create new homes which should ameliorate the extant lack of supply which has long been viewed as one of the reasons for the housing shortage in the UK. The nil-rate band was also doubled from £125,000 to £250,000 which should save hundreds of thousands of homebuyers a considerable sum in tax. Previously this region had a 2% rate applied to it which means the new measures should save the typical homebuyer £2500 [2%*£(250,000-125,000)].The housing industry is of a complementary nature given the knock-on effect on multiple other industries ranging from paint to furniture which benefit from strong activity amongst home buyers.

To overcome the spiralling cost of energy stemming from Russia’s invasion of Ukraine earlier this year, which led to many Western nations imposing an embargo on Russian oil and gas, there was limited supply especially considering how many oil and gas producers cut production during Covid-19 due to lockdowns and subdued demand. The sudden rebound in economic activity and re-opening of economies and sectors such as aviation has led to demand for energy outstripping supply. The Energy Price Guarantee is expected to benefit the average household by £1000 a year in savings on their energy bill whilst the Energy Bill Relief Scheme should reduce the cost of business energy bills by 50%. This is expected to bring inflation under control as well given that energy price spikes have been a major contributing factor to the current inflation level.

Are you seeking to explore your company’s potential and navigate the dynamic business environment? Then Cheylesmore Accountants are the partners you need to supercharge your business’s performance! In addition to carrying out financial analysis, we can also offer a host of tax planning, bookkeeping and payroll-related services to enable you to be at ease about your business’s financial affairs.