Today, the Chancellor, Jeremy Hunt has announced the Autumn Budget in the House of Commons, saying:
“In the face of unprecedented global headwinds, families, pensioners, businesses, teachers, nurses and many others are worried about the future. So today we deliver a plan to tackle the cost-of-living crisis and rebuild our economy…” He added that, “Stability, growth and public services” are the three priorities.
Key announcements are:
Personal taxes
- Income tax, inheritance tax and main national insurance thresholds are frozen for a further two years to April 2028.
- Dividend allowance will be cut from £2,000 to £1,000 next year and then to £500 from April 2024.
- The Annual Exempt Amount for capital gains tax will be reduced from £12,300 to £6,000 next year and then to £3,000 from April 2024.
- The threshold for the 45p additional rate of tax will be reduced from £150,000 to £125,140.
- Electric vehicles will not be exempt from vehicle excise duty from 2025.
- Stamp duty cuts announced in the mini-budget will remain, but just until 31st March 2025.
- Average energy bills will increase to £3,000 a year from April next year, under the government’s guarantee.
Business taxes
- Windfall taxes will raise £14bn, including a new temporary 45% levy on electricity producers.
- £14bn tax cut on business rates.
- The Employers National Insurance Contributions threshold is frozen until April 2028. The Employment Allowance will be retained at its new, higher level of £5,000 until March 2026.
- National living wage will increase, meaning the hourly rate will be £10.42 from April 2023.
- R&D tax relief for SMEs deduction rate will be cut to 86% and the credit rate to 10% but the rate of the separate R&D expenditure credit will rise from 13% to 20%.
- Existing funding promised for HS2 to Manchester and East West Rail and gigabit broadband rollout.
Simon Deans, senior partner, B P Collins says:
“We always listen very carefully to our clients and advise about matters that concern them every single day. Whatever you want or need to achieve, we are here to help.”
