Value added tax The reduced 12.5% VAT rate for hospitality, holiday accommodation and attractions will end on 31 March 2022, at which point the rate will revert to the 20% standard rate. Student finance In January and February the government announced new rules for student finance applying to students in England and Wales. For existing Plan 2 student loan borrowers (those who started a course on or after 1 September 2012) and those starting courses in the 2022/23 academic year, the repayment threshold will be frozen at £27,295 up to and including 2024/25, before increasing annually in line with RPI thereafter. For new students commencing study from the 2023/24 academic year: • the maximum rate of interest during and after study will be cut to RPI+0% • the repayment term will be extended from 30 years to 40 years; and • the repayment threshold will be reduced to £25,000 and frozen at that level before increasing annually with RPI from 2027/28. The mechanism by which the Treasury accounts for these changes will produce an £11.15 billion windfall in 2022/23. SPRING STATEMENT l 23 March 2022 8
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