Today, Chancellor Jeremy Hunt unveiled his long-awaited Autumn Statement, below we have summarised the main highlights relevant to businesses as part of a £55bn package of tax rises and spending cuts on a ‘balanced path to stability’.
You can download our indepth guide on the Autumn Statement 2022 here.
Tax
- The threshold for which the 45p rate becomes payable has been reduced from £150,000 to £125,140
- The freeze on the income tax personal allowance, higher rate threshold, main national insurance thresholds, and inheritance tax thresholds has been maintained for a further 2 years, ending in April 2028.
- The allowance for dividends will be cut from £2,000 to £1,000 as of next year, and then to £500 from April 2024.
- The current capital gains tax exemption amount of £12,300 per year will be reduced to £6,000 next year, and then to £3,000 from April 2024.
- Electric vehicles will no longer be exempt from vehicle excise duty as of April 2025.
- Cuts to stamp duty announced in the mini-budget remain in place until 31st March 2025.
Business Taxes
- The new, higher level of £5,000 for the employment allowance will stay in place until March 2026.
- R&D tax relief for SMEs will see the credit rate dropped to 10%, the deduction rate reduced to 86%, and the rate for the separate R&D expenditure credit raised from 13% to 20%.
- Major oil and gas companies will have their windfall tax hiked to 35% from 25%, and electricity generators will be subject to a 45% energy profits levy.
- For over two thirds of properties, business rates will not increase at all next year. The chancellor claims that hundreds of thousands of pubs, restaurants, and smaller high-street shops will profit by £14 billion over five years.
Get in touch
If you have concerns regarding the recent announcement, or just need some extra support and advice, please get in touch with our team at hello@bkplus.co.uk
