(Bloomberg) --

The additional rate of income tax will be abolished from April 2023 and effectively replaced with a single higher rate of 40%, UK Chancellor of the Exchequer Kwasi Kwarteng announced in his mini-Budget.

The current 45% additional rate is “currently higher than the headline top rate in G7 countries like the US and Italy,” Kwarteng told the House of Commons on Friday. “And it is higher even than social democracies like Norway.”

Kwarteng also cut stamp duty, a homebuyer tax, doubling the threshold so there is no tax to pay on the first £250,000 ($280,000) of a property’s value.

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