Here are the key points from the Government's budget delivered on 22nd November 2023 that effect business owners and property investors.
Our chancellor Jeremy Hunt has delivered the 2023 Autumn Statement with the aim of steering the UK back to growth. This comes on the backdrop of less gloomy OBR forecasts and with inflation falling. He has announced his 110 growth measures today to boost business and unlock investment.
Inflation
The latest October saw inflation fall to 4.6%. This is a significant improvement to the 11.1% rates we saw at the start of the year. The government are expecting it to reach 2% in 2025, which is longer than expected.
The Economy
In November the OBR expected the UK to enter into a recession. The chancellor expects the UK to grow by 0.6% this year. Government debt has been reduced compared to forecasts at the start of the year. The government's borrowing costs have also fallen. Then the UK economy is set to grow from 2024 owards.
Corporation Tax
The increase from 19% to 25% for profits over £250,000 will remain in place.
Companies will be able to fully write off ("fully expense") the full cost of qualifying business investment into IT, equipment and plant & machinery.
National Insurance
The NI for employees will be cut by 2% to 10%, which will benefit 27 million people. This will come into effect from 6th January 2024.
He also announced that he is abolishing class 2 national insurance. This will help self employed people £192 per year. Those with profits between £6,725 and £12,570 will continue to get a credit towards their state pension, without paying NIC's.
Finally, class 4 national insurance will be cut from 9% to 8% for people with earnings between £12,570 up to £50,270.
Employment
The employment allowance will be retained at the higher level of £5,000.
Capital Gains Tax
The 'annual exemption' amount is cut from £6,000 to £3,000 from April 2024.
Other Measures
A further £50m to increase apprentices in the UK.
Alcohol duty has been frozen.
There will be no increase in fuel duty to help drivers.
The triple lock on the State Pension will remain, which is a lifeline for many vunerable pensioners. This means a 8.5% increase to the state pension from April 24.
The Minimum wage will rise from April 2024 to £11.44 per hour and will apply to all workers above the age of 21.
If you would like to know more about how this effects your business, please contact your team member directly or email enquiries@Charterwells.co.uk.