National Insurance Contributions (Reduction in Rates) Act 2023

1 Reduction of Class 1 main primary percentage

(1) In the Social Security Contributions and Benefits Act 1992, in section 8(2)(a) (main primary percentage), for “12 per cent” substitute “10%”.

(2) In the Social Security Contributions and Benefits (Northern Ireland) Act 1992, in section 8(2)(a) (main primary percentage), for “12 per cent” substitute “10%”.

(3) In regulation 131 of the Social Security (Contributions) Regulations 2001—

(a) omit “On and after 6th April 2011”, and

(b) for “5.85 per cent” substitute “3.85%”.

(4) The amendments made by this section come into force on 6 January 2024.

2 Reduction of main Class 4 percentage

(1) In the Social Security Contributions and Benefits Act 1992, in section 15(3ZA)(a), for “9 per cent” substitute “8%”.

(2) In the Social Security Contributions and Benefits (Northern Ireland) Act 1992, in section 15(3ZA)(a) , for “9 per cent” substitute “8%”.

(3) The amendments made by this section come into force on 6 April 2024.

3 Removal of requirement to pay Class 2 contributions

(1) In section 11 of the Social Security Contributions and Benefits Act 1992 (Class 2 contributions)—

(a) omit subsection (2),

(b) in subsection (4), omit paragraph (a),

(c) omit subsection (5),

(d) in subsection (5A), omit the words from “but” to the end,

(e) in subsection (5B), omit “under subsection (2)”, and

(f) in subsection (8), for “subsections (2) and” substitute “subsection”.

(2) In section 11 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (Class 2 contributions)—

(a) omit subsection (2),

(b) in subsection (4), omit paragraph (a),

(c) omit subsection (5),

(d) in subsection (5A), omit the words from “but” to the end,

(e) in subsection (5B), omit “under subsection (2)”, and

(f) in subsection (8), for “subsections (2) and” substitute “subsection”.

(3) The amendments made by this section come into force on 6 April 2024.

4 Transitional and consequential provision

The Schedule contains transitional and consequential provision.

5 Short title

This Act may be cited as the National Insurance Contributions (Reduction in Rates) Act 2023.