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Summary of Autumn budget

Updated: Sep 19, 2023


Current Chancellor Jeremy Hunt announced budget plans in his recent Autumn Statement.


Our director, Asif Abubaker will provide a breakdown of what the new budgetary plans will mean for you.


Changes to personal & employment taxes


Income tax

In a move which means ‘those earning £150,000 or more will pay just over £1,200 extra a year’, the threshold for people paying the top rate of tax (45%) is to drop from £150,000 to £125,140.


The income tax personal allowance and the main National Insurance (NI) thresholds have also been frozen for a further two years to April 2028. The Employment Allowances for NI will be retained at the higher £5,000 level until March 2026.


Dividend tax

There is going to be a 50% reduction in the current dividend allowance (£2,000 to £1,000) from April 2023. The allowance will also drop by a further 50% to £500 from April 2024.


Capital Gains Tax (CGT)

The Annual Exempt Amount for CGT on ‘chargeable assets’ will drop from £12,300 to £6,000 next year and then to £3,000 from April 2024.


Inheritance tax (IHT)

The IHT rate has been frozen since 2009 and subsequently hasn’t kept pace with inflation. The current rate means 40% tax is due on estates over £325,000.


This threshold is staying in place until April 2028, with more people falling under the criteria for payment as a result.


Company cars

Electric vehicles (EVs) will no longer be exempt from Vehicle Excise Duty from April 2025. Also, company car tax rate increases will be limited to 1 percentage point per year for three years from 2025.


Changes to business taxes


Research & Development (R&D)

The R&D tax relief for SMEs will see a deduction rate cut to 86% from 130%, as well as the credit rate being reduced to 10% from 14.5%. There will, however, be an increase in the rate of the separate R&D expenditure credit from 13% to 20%.


Corporation tax

The corporation tax rate rise from 19% to 25% will go ahead as planned next April.


Business rates

Representing a £14bn tax cut over the next five years, nearly two-thirds of properties will not pay any extra business rates next year.


VAT threshold

The current VAT registration threshold of £85,000 to stay in place until March 2026.


Tariff suspensions

Tariffs will be removed on over 100 goods for two years. The measure will remove tariffs as high as 18% on goods ranging from aluminium frames used by UK bicycle manufacturers to ingredients used by UK food producers.


For further information, please contact Asif Abubaker on 01924 461236, or email asif.abubaker@kingswellwatts.co.uk.




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