Autumn Statement - November 2022

The Chancellor Jeremy Hunt has today delivered his Autumn Statement in the House of Commons. Here are the key headline announcements:

Personal Tax

• 45% tax rate threshold reduced from £150,000 to £125,140, meaning people earning £150,000 or more will pay an extra £1,243 of tax;
• Dividend allowance cut from £2,000 to £1,000 from April 2023 and to £500 from April 2024;
• Tax free personal allowance, Employees National Insurance Contribution and 40% higher rate tax thresholds frozen at current levels until at least April 2028;
• Capital Gains Tax Annual Exemption to reduce from £12,300 to £6,000 from April 2023 and to £3,000 from April 2024;
• Inheritance Tax nil rate band and residence nil rate band frozen until April 2028;
• Benefit in kind rates for Electric and Ultra-Low Emission Cars will remain lower, but will rise by 1% per year from April 2025

Business Tax

• Employment Allowance against Employer’s National Insurance Contributions to remain at £5,000 each year;
• The threshold at which Employer National Insurance Contributions become payable for each employee will be frozen until April 2028;
• VAT registration threshold to be frozen until March 2026;
• The rate of R&D tax relief for SMEs is to be reduced from April 2023 from 130% additional deduction to 86%; 
• The R&D Expenditure Credit will be increased from 13% to 20%. RDEC is available to companies of all sizes;
• From April 2023 business rates in England will be updated to reflect property values from that date (previously based on 2017 values). A transition scheme will be operated for businesses whose rates increase as a result of the revaluation. 

Other

• The reductions in Stamp Duty Land Tax announced at the mini-Budget will be maintained until March 2025;
• From April 2025 Electric Vehicles will no longer be exempt from Vehicle Excise Duty

We will monitor the Government press releases as they are issued and bring you further information as soon as we know it. 

We are here to help, so if you have any queries or wish to discuss any of the above then please contact us.