Muras Matters: Autumn Statement 2022 – Stability, Growth and Public Services

The Chancellor, Jeremy Hunt, has just delivered his Autumn Statement based around the priorities of stability, growth and public services. The tax changes announced are mainly around the preserving or reduction of tax thresholds and with most of the changes already leaked in advance, the statement contained very few surprises.

Based on the speech and supporting documents, the main tax points referred to were as follows:

  • Income Tax and National Insurance: thresholds maintained at 2023-24 levels until April 2028;
  • Income Tax: dividend allowance reduced from £2,000 to £1,000 from April 2023 and then £500 from April 2024;
  • Income Tax: additional rate threshold reduced from £150,000 to £125,140 from April 2023;
  • Inheritance Tax: thresholds maintained at current level until April 2028;
  • Capital Gains Tax: reduce the annual exempt amount from £12,300 to £6,000 from April 2023 then £3,000 from April 2024;
  • Vehicle Excise Duty: electric vehicles will no longer be exempt from duty from April 2025 as the government seek to equalise treatment of electric and internal combustion engine vehicles;
  • Company Car Tax: percentage set rates from 6 April 2025 to 5 April 2028 will increase by 1 percentage point each year for electric vehicles and ultra low emission vehicles;
  • Car fuel benefit charge: increase in line with CPI in 2023-24;
  • Van benefit charge: increase in line with CPI in 2023-24;
  • National Insurance: the secondary threshold for employer contributions will be maintained at current level from April 2023 until April 2028;
  • UK implementation of global minimum corporate tax reforms from 31 December 2023;
  • R&D tax reliefs: from 1 April 2023 the RDEC rate will be reduced to 20% and enhanced relief for SME’s will reduce from 130% to 86% with the payable credit reducing to 10% from 14.5%;
  • VAT: registration threshold maintained at current level to 31 March 2026.

 If you would like to discuss how any of these changes may affect you please contact our Tax Director, Jenny Marks.

To see our other news items please visit our Muras Baker Jones – Blog.