Autumn Budget 2022 - Our breakdown

  • Investment Insights
  • 1 minute read

Chancellor Jeremy Hunt’s Autumn Statement came against the background of a Spring Statement and a September ‘mini-Budget’. The overall context is a European recession and high inflation in the wake of the pandemic and the war in Ukraine.

Here is a summary of the key points:

  • Main income tax allowances and thresholds, national insurance thresholds plus the inheritance tax nil rate bands stay at current levels until April 2028.
  • Threshold for the 45% additional rate of income tax reduces from £150,000 to £125,140 from April 2023.
  • Dividend allowance cut from £2,000 to £1,000 from April 2023, halved to £500 from April 2024.
  • Capital gains tax annual exempt amount cut from £12,300 to £6,000 for 2023/24, halved to £3,000 from April 2024.
  • The energy price guarantee adjusted from April 2023. The typical household will pay £3,000 a year.
  • The state pension, pension credit, universal credit, the benefit cap and other benefits will increase by 10.1% in line with CPI inflation to September 2022.
  • Business rates bills in England will be updated from April 2023 to reflect April 2021 property values. £13.6bn package of targeted support for businesses over the next five years.
  • Windfall profits of oil and gas companies subject to further tax increases. A new levy will apply to the ‘extraordinary returns’ of low-carbon electricity generators.

Before you invest, make sure you feel comfortable with the level of risk you take. Investments aim to grow your money, but they might lose it too.