Chancellor, Jeremy Hunt delivered an Autumn Statement intended to alleviate the cost-of-living crisis and rebuilding our economy. The main priorities of the plan focused on stability, growth and the protection of public services through implementing tax rises and cutting government spending.

The key points of note have been included below, for more detailed information please download our Budget Summary which explains the changes in more detail and how they will have an impact upon you, your business and your personal finances.

Changes to Taxation

• From April 2023, the top 45% additional rate of income tax for higher earners will be paid on earnings over £125,140, instead of £150,000 (excluding Scotland).
• The dividend tax allowance has been halved, falling from £2,000 to £1,000 next year and then to £500 from 2024.
• The tax-free Capital Gains Annual Exemption will be reduced from £12,300 to £6000 from April 2023 and then will see a further reduction to £3000 in April 2024.
• Income tax personal allowance, national insurance and inheritance tax thresholds are frozen for a further two years until April 2028.
• VAT registration and deregistration thresholds will be frozen at £85,000 and £83,000 until April 2026.
• R&D tax relief for SMEs deduction rate is cut from 130% to 86% and the repayable credit rate to 10%. On a separate note, the R&D expenditure credit will rise from 13% to 20%.

Cost of Living

• The minimum wage for people aged over 23 is set to increase from £9.50 to £10.42 an hour from next April.
• State pension payments and means-tested and disability benefits are set to increase by 10.1%, in line with inflation from 2023.
  
• The domestic energy price guarantee will carry on but will provide less of a subsidy with average annual household bills seeing an increase from £2500 to £3000 from April 2023.

Electric Cars

•  Electric vehicles will no longer be exempt from vehicle excise duty - all electric vehicle owners will need to pay road tax from April 2025. 

 Stamp Duty Land Tax

• The Stamp Duty Land Tax cuts announced on 31 October will remain in place until 31st of March 2025.

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We are here to help in any way we can - please speak to your usual Jerroms contact on 0121 693 5000 (Solihull Office), 01384 250202 (Halesowen) or 01675 466344 (Coleshill Office).