The Chancellor’s Autumn Statement


The Chancellor has today delivered his Autumn Statement to the House of Commons.  The headlines of the Statement include:
  • The Minimum Wage for people aged over 23 will increase from £9.50 to £10.42 per hour from April 2023
  • Apart from in Scotland, the top 45% additional rate of income tax will be paid on earnings over £125,140, instead of £150,000
  • Income tax personal allowance and higher rate thresholds will be frozen for a further two years, until April 2028
  • Main National Insurance and inheritance tax thresholds also frozen for a further two years, until April 2028
  • Tax free allowance for dividends has been cut in half, from £2,000 to £1,000 from April 2023, and cut again to £500 from April 2024
  • Capital gains tax allowance will reduce from £12,300 to £6,000 from April 2023, and will reduce again to £3,000 from April 2024
  • Import taxes will be removed on more than 100 goods, including some food products, for two years to reduce costs
  • A planned tax on online sales is shelved due to complexity
  • Electric cars, vans and motorcycles will pay road tax from April 2025
  • Local councils in England will be able to increase council tax up to 5% a year, without a local vote, instead of 3% currently
  • The Office for Budget Responsibility judges the UK to be in recession, as the economy has slowed for two quarters in a row. They predict growth for this year overall of 4.2%, but the size of the economy will shrink by 1.4% in 2023
  • The UK’s inflation rate is predicted to be 9.1% this year and 7.4% in 2023; and unemployment is expected to rise from 3.6% to 4.9% in 2024
As always, the devil is in the detail!  We will inform you of any further changes as we learn of them.

Castletons Accountants

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