The Autumn Statement

 In The Budget

The Autumn Statement – November 2022
The Chancellor Jeremy Hunt has delivered his Autumn statement today on 17th November 2022, stating that his priorities are stability, growth, and public services.

Key points from the Autumn Statement

Income Tax
The income tax personal allowance, higher rate threshold, main national insurance thresholds and the inheritance tax thresholds are maintained at current levels for a further two years to April 2028.

Top Rate of Income Tax
The 45p tax rate has been reduced from £150,000 to £125,140

Capital Gains Tax
The Annual Exempt Amount for capital gains tax will be cut from £12,300 to £6,000 next year and then to £3,000 from April 2024.

Dividend Allowance
Dividend allowance will be cut from £2,000 to £1,000 in April 2023 and then to £500 from April 2024.

Business Taxes
The Employers NICs threshold will be frozen until April 2028. The Employment Allowance remains at £5,000.

VAT
VAT registration threshold to be held at £85,000.
The Government will not be pursuing the Online Sales Tax (OST).

National Living Wage
The National Living Wage will increase next year by 9.7%, pushing up the hourly rate to £10.42 from April 2023.

Stamp Duty
Stamp duty cuts announced in the mini budget will remain in place until 31st March 2025.

Business Rates
Business rates will be re-evaluated from April 2023. However, the Chancellor says he will soften the impact with a £14bn tax cut over five years, meaning “two thirds of properties will not pay a penny more next year”

Energy Bills
The cap on energy bills will continue for a further 12 months but will rise from £2,500 to £3,000. The Chancellor said this is expected to provide households an extra £500 of support on average.

An extra £900 of energy bills support will be provided to households on means-tested benefits, £300 more will be given to pensioners and £150 will be given to those on disability benefit.

Electric Vehicles
Electric Vehicles will no longer be exempt from Vehicle Excise Duty from April 2025.

Windfall Tax
The Energy Profits Levy has increased on oil and gas companies from 25% to 35% from Jan 2023 to March 2028.

Defence and Aid
The defence budget will stay at least 2% of GDP. Overseas aid remains at 0.5%.

Pensions
Pensions will increase in line with inflation.

The pension triple lock is protected. The triple lock ensures that the state pension rises every year, by the consumer prices index (CPI) rate of inflation, the rate of earnings growth, or 2.5 per cent, whichever is highest.

The Government will review the pension age early next year.

Source: The Telegraph https://www.telegraph.co.uk/business/2022/11/17/key-points-autumn-statement-2022-summary-tax-rises-hunt/

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