The 2022 Mini Budget: What was announced and what actually happened

The September 2022 Mini Budget delivered by Chancellor Kwasi Kwarteng was one of the most dramatic fiscal announcements in modern UK history. The market reaction was swift and severe, and within weeks most of the headline measures had been reversed. We've updated this article to set out what was announced and — crucially — what actually came into force.

Income Tax

Announced: The basic rate of income tax would be cut from 20% to 19% from April 2023. The 45% additional rate would be abolished from April 2023.

What happened: Both measures were reversed before they took effect. The basic rate remains at 20% and the 45% additional rate remains in place. The basic rate reduction was formally cancelled in October 2022 under Jeremy Hunt.

Current position (2026/27): Basic rate 20%, higher rate 40%, additional rate 45% on income above £125,140.

National Insurance

Announced: The 1.25% National Insurance increase introduced in April 2022 would be reversed from 6 November 2022. The Health and Social Care Levy would be scrapped.

What happened: These measures were implemented as announced. NIC rates were cut from 6 November 2022 and the Health and Social Care Levy was abolished before it ever came into effect.

Current position (2026/27): Employee NIC is 8% on earnings between £12,570 and £50,270, and 2% above. Employer NIC is 15% on earnings above £5,000 per year (increased from 13.8% in the Autumn Budget 2024).

Stamp Duty Land Tax

Announced: The nil-rate threshold would be doubled from £125,000 to £250,000. First-time buyers' relief threshold would increase from £300,000 to £425,000 (with the maximum property value rising to £625,000).

What happened: The SDLT changes were implemented in September 2022 — but on a temporary basis. Both measures expired on 31 March 2025 and the thresholds have reverted. First-time buyers now benefit from a nil-rate band of £300,000 (maximum property value £500,000).

Current position (2026/27): Standard nil-rate threshold £125,000; first-time buyer nil-rate band £300,000 on properties up to £500,000.

Corporation Tax

Announced: The planned increase in Corporation Tax from 19% to 25% in April 2023 would be cancelled.

What happened: This was reversed. Corporation Tax did increase to 25% (main rate) from April 2023 as originally planned under the previous Chancellor.

Current position (2026/27): Corporation Tax is 19% for companies with profits up to £50,000 (small profits rate), rising to 25% (main rate) for profits over £250,000, with marginal relief in between.

IR35 Off-Payroll Working Rules

Announced: The IR35 reforms introduced in 2017 (public sector) and 2021 (private sector) would be repealed from April 2023.

What happened: This was reversed. The IR35 off-payroll working rules remain fully in place for both the public and private sectors.

Other Announcements

• Bankers' bonus cap: Scrapped as announced and remains removed.
• Investment Zones: Introduced but significantly scaled back from original ambitions; a smaller number of zones were established across the UK.

Takeaway

The 2022 Mini Budget serves as a reminder of how quickly the tax landscape can shift. If you have questions about the current tax position and how it applies to your circumstances, our team is happy to help.