November 18th, 2022What was announced in the Autumn Statement 2022?
On 17 November 2022, the government undertook the third fiscal statement in as many months, against a backdrop of rising inflation and economic recession.
Please feel free to download a copy of this Summary by clicking the link below.
Autumn Statement 2022
Here is a look at some of the policies that may be of interest to you:
- Income tax bands frozen until April 2028- Income tax rates and personal allowances will remain at the same level until at least April 2028. This will result in in more workers falling into higher tax brackets as wages increase with inflation. Meanwhile, the threshold at which people start paying the top 45p rate of Income tax will be reduced from £150,000 to £125,140. National Insurance and inheritance tax thresholds will also be frozen until April 2028, meaning the amount businesses and individuals pay will increase
- The National Living Wage increase- The National Living Wage will be increased from £9.50 an hour for over-23s to £10.42 from April 2023.
- Pensions and benefits-Both pensions and benefits will rise in line with inflation, the triple lock is being protected, meaning the full state pension will rise to £10,600 in April 2023. Protection of the triple lock ensures pensions cannot be overtaken by the rate of inflation and cost of living crisis
- Capital gains and dividend allowances-Tax-free allowances for dividend and capital gains tax is due to be cut over the next two years. The Dividend allowance will reduce to £1,000, while the Capital Gains Allowance will reduce to £6,000 per year
- Business rates-The property values which Business Rates are based upon have been revalued which will increase the rateable value of properties. Targeted support packages worth 13.6 billion over the next five years will help small businesses transition over to these higher rateable values. This means that two thirds of properties won’t pay a penny more – benefiting around 700k businesses
Throughout the Summary you will find informative comments to help you assess the effect that the proposed changes may have on you personally.
