- Investment Insights
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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.