Autumn Statement: November 2022
The chancellor Jeremy Hunt has announced his financial plans in the Autumn Statement today. Here is a summary of the key points made which may impact you and/or your business:
- Income tax thresholds have been frozen for the basic and higher rates of tax until April 2028.
- The income tax threshold for the 45% rate of tax has been reduced from £150,000 to £125,140.
- The tax-free dividend allowance will be reduced from £2,000 to £1,000 in 2023/24 and further reduced in 2024/25 to £500.
Capital Gains Tax
- The tax-free annual allowance for capital gains will be reduced in 2023/24 from £12,300 to £6,000 and further reduced in 2024/25 to £3,000.
Road Tax (VED)
- Electric car owners will have to pay Vehicle Excise Duty from April 2025 (they are currently exempt).
Other points noted
- The Windfall tax levied on oil and gas company profits will be increased from 25% to 35% and extended until 2028 (from December 2025).
- The state pension, benefits and tax credits will rise by 10.1%, in line with inflation
- There will be an increase in the National Living Wage from the current level of £9.50 an hour for over-23s to £10.42 from April 2023.
- There will be targeted support for those on low incomes, disability benefits and pensioners. Additional payments of £900 will be paid to those on means-tested benefits, £300 to pensioner households and £150 to people on disability benefits.
- Help for energy bills will be extended, but it will be less generous from April 2023.
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