The Chancellor, Jeremy Hunt, delivered his Autumn statement on 17 November 2022.
Here are a few highlights and upcoming key changes:
- Income Tax and National Insurance contributions thresholds will be fixed at their current rates until April 2028. The government will legislate for the income tax measures in Autumn Finance Bill 2022, and NICs changes through secondary legislation in early 2023.
- The Income Tax additional rate threshold (ART) will be lowered from £150,000 to £125,140 from 6 April 2023.
- The ART for non-savings and non-dividend income will apply to taxpayers in England, Wales, and Northern Ireland. The ART for savings and dividend income will apply UK-wide.
- The National Insurance contributions secondary threshold will be fixed at £9,100 from April 2023 until April 2028.
- The Dividend Allowance will be reduced from £2,000 to £1,000 from April 2023, and to £500 from April 2024.
- The Capital Gains Tax Annual Exempt Amount will reduce from £12,300 to £6,000 from April 2023 and to £3,000 from April 2024.
- The Inheritance Tax (IHT) nil-rate band and residence nil-rate bands will be fixed at their current rates until April 2028.
The following thresholds have been frozen
- The VAT registration and deregistration thresholds will be maintained at the current levels of £85,000 for an additional two years from 1 April 2024.
Corporate Tax changes
- Following confirmation of the increase in Corporation Tax to 25% from April 23, consequential changes to the Bank Surcharge and Diverted Profits Tax will be made to ensure that the same differential in rates will apply.
- In addition, as previously announced, the £1 million level of the Annual Investment Allowance is being made permanent.
Stamp Duty Land Tax (SDLT)
- SDLT cuts – on 23 September 2022, the government increased the nil-rate thresholds of SDLT from £125k to £250k for all purchasers of residential property in England and Northern Ireland and increased the nil-rate threshold for first time buyers from £300k to £425k.
- The cut will remain in place until 31 March 2025. This will be legislated through the SDLT (Reduction) Bill.
Other measures
- Cost of Living Support – additional cost of living payments to support the most vulnerable households, including up to £900 of additional support in 2023-24 for households on means tested benefits, including those receiving tax credits.
- Changes to the taxation of electric vehicles – from April 2025, electric cars, vans and motorcycles will begin to pay Vehicle Excise Duty (VED), in the same way as petrol and diesel vehicles.
- Company Car Tax (CCT) Rates – the government is setting rates for CCT until April 2028 to provide long term certainty for taxpayers and industry in Autumn Finance Bill 2022.
- First Year Allowance for electric vehicle charge points – the government will extend the 100% First Year Allowance for electric vehicle charge points to 31 March 2025 for Corporation Tax and 5 April 2025 for Income Tax.
- A substantial package of reforms to business rates has also been announced.