17 Nov Summary: Autumn Statement 2022
Chancellor Jeremy Hunt has unveiled a series of spending cuts and tax rises in an Autumn Statement that he said would restore market confidence shaken by his predecessor’s mini-budget.
- The additional rate (45%) threshold will fall from £150,000 to £125,140 pushing more taxpayers into the 45% tax bracket. Those earning over £150,000 a year will pay just over £1,200 extra per year.
- The income tax personal allowance, higher rate threshold, main national insurance thresholds and inheritance tax thresholds will all remain the same until April 2028.
- The dividend allowance will be cut from £2,000 to £1,000 next tax year and then cut to £500 from April 2024.
- The annual exemption for Capital Gains Tax will be cut from £12,300 to £6,000 next tax year and then £3,000 from April 2024.
- The stamp duty cuts announced in the mini budget will remain until March 2025
- From April 2025, electric vehicles will no longer be exempt from Vehicle Excise Duty
- Electric vehicle drivers will pay road tax from April 2025
- The energy bill aid for households will be extended beyond April 2023 for a further year through Energy Price Guarantee but the average annual bill will increase to £3,000 from the current £2,500
- The VAT threshold will remain at £85,000 until March 2026
- Employers NI contributions threshold will be frozen until April 2028 and the Employment Allowance will remain at £5,000 until March 2026
- The R&D tax relief for SMEs deduction rate will be cut to 86% and the credit rate to 10%
- The R&D Expenditure Credit will increase from 13% to 20%
- The windfall tax on major oil & gas producers will be raised to 35% from 25% and a 45% Energy Profits Levy rate will be imposed on electricity generators