18 November
By Simon Roberts
Categories: Government/Business/Industry News/Taxation

Autumn Statement 2022 Summary Report

Autumn Statement 2022 Summary Report

Download our Autumn Statement 2022 summary report and join our upcoming webinar to stay informed and up to date with the tax and legislation changes announced.

The new Chancellor Jeremy Hunt had warned the public and the financial markets that his Autumn Statement would include “eye-watering” cuts in public spending and tax rises for those with the ‘broadest shoulders’. In an attempt to avoid the austerity that followed the 2008 financial crash, Mr Hunt focused on measures to keep the period of recession as short as possible.

The challenge following the Chancellor'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. There has been a great deal of speculation about what Mr Hunt might do, and sometimes an awareness of what has not been said can be important too.

Our document summaries the main changes that were announced yesterday, as well as setting out what has survived and what has been cancelled from the September plan.  There were also some rumoured possibilities that have come to nothing.

One of the Chancellor’s tax raising measures is a promise to freeze the main thresholds for income tax and inheritance tax for the next five years – that may be something of a relief after a year in which three different sets of National Insurance rates have applied, but the effects of inflation will draw more people into paying these taxes and more of them into liability for higher rates. There are also more obvious tax rises through reductions in reliefs and exemptions and a lowering of the point at which the top rate of income tax applies.

Significant Points:

  • Basic rate of income tax to remain at 20% 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 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.
  • The National Living Wage will see its largest ever cash increase, and all National Minimum Wage rates will also receive a boost from April 2023.

Download our full Autumn Statement summary report here.

Our team of tax experts will continue to provide further detailed analysis of the new measures in the coming days and of course, if you want to talk about the announcement, what is means for you and your finances or how we can work together more generally, please do get in touch.