Autumn Statement Summary 2022
Yesterday, recently appointed Chancellor Jeremy Hunt delivered the Autumn Statement. He said his priorities are stability, growth and public services, and wanted to provide 'fair solutions' despite taking 'difficult decisions'.
In normal times, it is hard enough to keep track of changes that come in immediately, changes that are coming soon, and proposals that are on the horizon. This year is not normal: there have been four Chancellors and three fiscal statements.
The challenge following Jeremy Hunt's first Autumn Statement has been to identify what, if anything, of Kwasi Kwarteng's proposals survived, as well as understanding the steps he has taken to fill the holes in the government coffers that the ill-fated September 'Plan for Growth' helped to create.
Our Autumn Statement Summary details the main changes that were announced by Mr Hunt, as well as setting out what has survived and what has been cancelled from the September plan, and points out some of the rumoured possibilities that have come to nothing.
Read our Autumn Statement Summary
Significant points from the Autumn Statement:
- Basic rate of income tax to remain at 20%, higher rate at 40% and additional rate at 45% for 2023/24
- Most tax rate bands frozen at current levels until 5 April 2028
- 45% rate will apply to income above £125,140 in 2023/24
- Dividend income and capital gains to be more heavily taxed from 2023/24
- No changes announced to Business Asset Disposal Relief
- No changes announced to pension tax reliefs
- Inheritance tax thresholds also frozen until 5 April 2028
- Corporation tax rate increase to 25% from 1 April 2023 restored
- VAT registration threshold frozen at £85,000 for two more years, to 31 March 2026
- Affirmation of support for the state pension 'triple lock' with an inflation-linked increase from April 2023
We will review the new proposals to ensure we offer our clients the best advice to help them remain as tax efficient as possible. And our colleagues at Carpenter Box Financial Advisers are always on hand to help manage investments and pensions in these turbulent times.
If you would like more detailed one-to-one advice on any of the issues raised in the Budget, please get in touch or give us a call on 01903 234094.
