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Autumn Statement 2022
17 November 2022

Today, the Chancellor of the Exchequer, Jeremy Hunt, delivered his highly anticipated autumn statement to the House of Commons. Today’s announcements were intended to re-assure the markets following his predecessor’s disastrous mini budget a few weeks ago. The Chancellor stated everyone is concerned for the future and there is a need to tackle the cost-of-living crisis and stabilise the economy.

This is to be achieved by a combination of tax rises and spending cuts. We talk to Tax Partner Colin Hamilton to get a round-up of today’s announcements...

Tax...

  • An expansion to the windfall tax on energy firms from 25% to 35%.
  • Freezing personal allowance thresholds until April 2028.
  • Capital gains tax (CGT) allowance cut from £12,300 to £6,000 and then to £3,000.
  • Freeze inheritance tax nil rate bands until 2027- 28.
  • Revised the energy support package from April 2023.
  • Dividend allowance will be cut to £1,000 and then to £500.
  • Electric car no longer exempt from vehicle excise duty.
  • Freeze employer’s NI threshold until April 2028.
  • VAT threshold maintained until March 2026.
  • R&D (Research & Development) relief for SMEs cut to 86% and the credit rate to 10%.
  • Stamp Duty cut will remain only until March 2025.

For Businesses...

  • Employers NIC threshold frozen until 2028.
  • Employment Allowance retained at £5,000.
  • VAT threshold to remain at £85,000.
  • More resources employed to tackle tax evasion and avoidance.
  • Living wage for those over 23 from £9.50 an hour to £10.42 an hour from April 2023.

Colin commented: “As always, the devil is in the detail, but it seems unlikely that these measures alone will raise enough. Both the Prime Minster, Rishi Sunak, and Mr Hunt will be relieved that the announcement didn't unsettle the markets, but the economic outlook is nothing but grim for the public and the government. The coming months could be very bumpy indeed.”


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