Chancellor, Jeremy Hunt, has delivered the Autumn Statement detailing his plan to tackle the cost of living crisis and rebuild our economy with a focus on stability, growth and public services.
Here are the main highlights from the Autumn Statement:
- The additional rate threshold at which the 45% income tax is paid will reduce from £150,000 to £125,140
- The annual exempt amount for Capital Gains Tax (CGT) will be cut from £12,300 to £6,000 next year then to £3,000 from April 2024
- The dividend allowance will be cut from £2,000 to £1,000 next year then to £500 from April 2024.
- The previously announced rise in Corporation Tax to 25% in April 2023 for profits in excess of £250,000 remains in place
- From April 2023, the National Living Wage, will increase by 9.7% from £9.50/hour for over-23s to £10.42/hour
- There will be a £13.6 billion package of business rates support over the next 5 years, additionally, the relief for retail, hospitality and leisure sectors will be extended and increased to 75%, capped at £110,000 per business
- The State Pension “triple lock” will be honoured and the state pension will increase in line with inflation
- The Stamp Duty reductions will remain until 31 March 2025
- From April 2025, electric cars, vans and motorcycles will begin to pay Vehicle Excise Duty in the same way as petrol and diesel vehicles
- The Energy Price Guarantee will continue for a further 12 months at a higher level of £3,000 per year for the average household, this will still mean an average of £500 support for every household in the country. Before the end of this year, the government will bring forward a new targeted approach to support businesses from next April