Kwasi Kwarteng’s first set piece as Chancellor of the Exchequer was never going to be easy, even before the 0.5% increase in interest rates the day before.

The new Prime Minister Liz Truss revealed much of what we might expect before Mr Kwarteng spoke a word, so we already knew that there would be:

• a two-year £2,500 Energy Price Guarantee (EPG) for consumers;
• similar but shorter-lived support for businesses and other non-domestic energy users;
• cuts to National Insurance Contribution (NIC) rates; and
• a reversal of the planned April 2023 increases in the rate of corporation tax.

Nevertheless, Mr Kwarteng’s launch of ‘The Growth Plan’ contained some surprises, including the end of additional rate income tax (outside Scotland) and the reversal of recent changes to IR35.

Most recent announcements

Dividend taxation

From 2023/24, the tax rates applicable to dividends will be reduced by 1.25 percentage points, taking them back to 2021/22 levels.

Venture capital schemes

From April 2023, companies will be able to raise up to £250,000 of seed enterprise investment scheme (SEIS) investment – a £100,000 increase on the current limit. At the same time:

• the gross asset limit will be increased to £350,000;
• the company age limit will be raised from two to three years; and
• the annual investor limit will double to £200,000.

The SEIS, enterprise investment scheme (EIS) and venture capital trust (VCT) scheme will now be extended beyond 2025.

VAT-free shopping

A new shopping scheme free from any value added tax (VAT) will be developed for overseas visitors to Great Britain. This will enable them to obtain a VAT refund on goods bought in the high street, airports and other departure points and exported from the UK in their personal baggage. A consultation will gather views on the approach and design of the scheme, to be delivered as soon as possible.

Annual investment allowance

The current £1 million level of the annual investment allowance will be made permanent.

The domestic energy scheme

The Prime Minister set out a range of measures on 8 September to protect domestic consumers from the £3,549 Ofgem utility price cap originally due to take effect for three months from 1 October

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