Autumn Statement 2022

Autumn Statement 2022

Yesterday, Thursday 17th of November, the Chancellor of the Exchequer, Jeremy Hunt presented the Autumn Statement. Here are the key points from yesterday’s statement:

Personal Tax

Income Tax Thresholds – The Income Tax personal allowance will remain frozen at £12,570 and the threshold for the higher rate of 40% will remain at £50,270  until April 2028, while the 45% additional rate of income tax will be lowered from £150,000 to £125,140 from 6 April 2023. (England ONLY)

The main National Insurance thresholds will remain frozen until April 2028.

The Inheritance Tax nil rate bands will remain frozen until April 2028. The nil-rate band is frozen at £325,000, the residence nil-rate at £175,000, and the residence nil-rate band taper will continue to start at £2 million.

Dividend allowance will be cut from £2,000 to £1,000 from April 2023, with a further reduction to £500 from April 2024.

The Capital Gains annual exempt amount will be reduced from £12,300 to £6,000 in 2023 with a further reduction to £3,000 in April 2024.

The increases to Stamp Duty Land Tax nil-rate threshold (from £125,000 to £250,000) and the nil-rate threshold for first-time buyers (from £300,000 to £425,000) which came into place on 23 September 2022 will only remain until March 2025 before returning to their previous levels. (England ONLY)

Business Tax

Corporation Tax will increase from the current rate of 19% to 25% from April 2023 as previously announced by the government.

Research and Development (R&D) tax reliefs

For expenditure on or after 1 April 2023,

  • The Research and Development Expenditure Credit (RDEC) rate will increase from 13% to 20%
  • The small and medium-sized enterprises (SME) additional deduction will decrease from 130% to 86%
  • The SME credit rate will decrease from 14.5% to 10%.

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