The Autumn Statement – November 2022

The Autumn Statement has now been announced by Chancellor Jeremy Hunt. Here’s a roundup of the key takeaways:

– The dividend tax free allowance threshold will be reduced from £2,000 to £1,000 from April 2023, and £500 in 2024-25.

– The threshold for Capital Gains Tax will be reduced from £12,300 to £6,000 from April 2023. A further reduction will be seen in 2024-25 to £3,000.

– From April 2023, the threshold for the additional rate of income tax will be reduced from £150,000 to £125,140. Anyone earning above £125,140 will be taxed at the 45% from the next financial year.

– No changes to the personal tax thresholds, which are to be maintained at the current level until April 2028. This also includes the National Insurance Contribution threshold.

– Jeremy Hunt confirmed that the Annual Investment Allowance will be permanently set at £1m to help promote growth.

– The Employment Allowance was confirmed to stay at £5,000.

– Corporation Tax is due to increase to 25% in April 2023 if a company’s profits exceed £250,000. Companies whose profits are between £50,001 and £250,000 will be subject to a tapered relief. Companies whose profits fall below £50,000 will remain at 19%.

– From April 2025, electric cars will cease to be exempt from Vehicle Excise Duty.

– From 6th April 2023, the rate of Class 2 National Insurance for the self-employed will increase to £3.45 per week.

– VAT registration will remain at £85,000 until 1st April 2026. 

– From April 2023, all thresholds for the National Minimum Wage will increase.

– For expenditure on or after 1st April 2023, the Research and Development Expenditure Credit (RDEC) rate will increase from 13% to 20%. The SME additional deduction will decrease from 130% to 86%, and the SME credit rate will decrease from 14.5% to 10%.

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