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Our new Chancellor Jeremy Hunt has recently unveiled the Autumn Statement (a bit like a budget) in the House of Commons.
There was a myriad of strategies announced revealing tax rises, tax threshold freezes and spending cuts worth billions of pounds aimed at rejuvenating the country’s economy after what has been a shaky couple of years.
Here are the main highlights:
Minimum wage for people aged over 23 years to be increased from £9.50 per hour to £10.42 per hour from April 2023.
Additional rate of income tax (45%) threshold reduced from £150,000 to £125,140 (apart from Scotland).
Income tax personal allowance and higher rate thresholds frozen until April 2028.
National Insurance and inheritance tax thresholds also frozen until April 2028.
Capital Gains tax free allowance reduced from £12,300 to £6,000 from April 2023 and again to £3,000 from April 2024.
Annual Employment Allowance will remain at £5,000.
Dividend tax free allowance reduced from £2,000 to £1,000 from April 2023 and again to £500 from April 2024.
VAT threshold of £85,000 to remain in place until March 2026.
Current Stamp Duty Land Tax cuts will remain until March 2025.
Road Tax to be introduced for electric vehicles from April 2025 and Benefit In Kind tax will increase by 1% each year, also from April 2025, up to a maximum of 5% for fully electric vehicles.
Research and Development (R&D) tax relief for SMEs will be reduced from 130% to 86%, along with the repayable credit rate reducing from 14.5% to 10% from April 2023.
Household energy price cap extended for one year beyond April.
Households on means-tested benefits will get support payments of £900 next year, pensioner households will receive £300 and disability benefit individuals will receive £150.
New 45% tax on companies that generate electricity to be applied from January.
NHS budget will increase by £3.3 billion a year and schools by £2.3 billion a year for the next two years.
Defence spending to be maintained at 2% of national income.
Overseas aid spending kept at 0.5% for the next five years.
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