The Autumn Statement November 2022

The Autumn Statement November 2022

….., well this couldn’t be any more different to September’s tax-cutting mini-Budget, which the Chancellor Jeremy Hunt reversed quickly after being appointed into the role.

With a black hole reported in the Office of Budget Responsibility’s (OBR) forecast, Jeremy Hunt confirmed the expected freeze of the personal allowance thresholds until April 2028 apart from  lowering the threshold of the 45% rate from £150,000 to £125,140.

Among the measures the Chancellor announced in the Autumn Statement were: 

• Freezing personal allowance thresholds until April 2028, apart from the ‘additional rate’ threshold which has been lowered as stated above to £125,140 with effect from April 2023

• Capital gains tax allowance cut from £12,300 to £6,000 from April 2023 and to £3,000 from April 2024

• Freeze inheritance tax nil rate bands until 2028

• Dividend allowance will be reduced from £2,000 to £1,000 from April 2023 and reduced again to £500 from April 2024

• Freeze employers’ National Insurance threshold until April 2028 and the secondary allowance of £9,100 will be fixed from April 2023 until April 2028

• VAT threshold maintained until March 2026 for registration and de-registration

• R&D tax reliefs have been updated and with effect from April 2023 the Research & Development Expenditure Credit 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%

• Increasing the national living wage for 23-year-olds and over to £10.42

If you require any further information about the Autumn Statement, or would like to discuss any of the above please contact us here at Rift Accounting.