Here are the key points from the Government's Autumn Statement delivered on 17th November 2022 that effect business owners and property investors.
Our new chancellor Jeremy Hunt has delivered his Autumn statement with the key aim of bringing clarity over how our government will plug the huge £55 billion deficit, try to minimise the depth and duration of the recession, whilst calming the markets and investors.
The threshold from when the top rate tax rate of 45% starts has been reduced from £150,000 to £125,140. This will mean that those earning £150,000 will pay an extra £1,243 per year.
Personal tax allowances, National Insurance allowances and Inheritance tax thresholds have all been frozen until April 2028.
Dividend allowance to be cut from £2,000 to £1,000 from April 2023 and then further to £500 from April 2024.
Capital Gains Tax
The 'annual exemption' amount is cut from £12,300 to £6,000 from April 2023 and then down to £3,000 from April 2024.
From April 2025 Vehicle Excise Duty will apply, although it will remain lower for electric vehicles.
The stamp duty land tax cut, with the limit raised to £250,000, will remain in place until 31 March 2025. This means that there is no stamp duty payable for properties up to £250,000. Also, this is increased to £425,000 for first time buyers, who are buying properties of up to the value of £625,000.
£14 billion worth of tax cuts to be provided over the next 5 years. This should benefit about 700,000 businesses, who may no longer be required to pay rates. This will start from April 2023. This will be welcome news for UK's high streets.
The annual investment allowance (AIA) is to remain at £1m permanently as it was set to revert back to £200,000 in March 2023. This is to encourage businesses to invest and grow.
This will be retained at the higher level of £5,000.
From 2023 until March 2028 the energy profits levy will increase from 25% to 35%. There will also be a new 45% levy on profits of electricity generators over a certain threshold. These two measures should raise in the region of £14 billion next year.
The government's energy price guarantee will be kept for a further 12 months at an average of £3,000 for a typical house, which is increased from the current level of £2,500.
The National Living Wage will rise by 9.7% from April 2023 to £10.42 per hour.
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.