Chancellor Jeremy Hunt presented his 2022 autumn statement on Thursday 17th November 2022.
The key announcements are summarised below;
- State pension payments and means-tested and disability benefits to increase by 10.1%, in line with inflation.
- Top 45% additional rate of income tax will be paid on earnings over £125,140, instead of £150,000.
- Income tax personal allowance and higher rate thresholds frozen for further two years, until April 2028.
- Main National Insurance and inheritance tax thresholds also frozen for further two years, until April 2028.
- Inheritance tax (IHT) threshold has been frozen. The ‘nil-rate band’ – the amount that can be passed on before IHT is due at a rate of 40% – will stay at its current rate of £325,000 until April 2028.
- The dividend allowance will be cut from £2,000 to £1,000 next year, and then to £500 in April 2024.
- Local councils in England will be able to hike council tax up to 5% a year without a local vote, instead of 3% currently.
- Legally-enforceable minimum wage for people aged over 23 to increase from £9.50 to £10.42 an hour from April 2023.
- Capital gains tax (CGT) allowance will be cut to £6,000 in 2023-24, down from £12,300. The allowance will be cut again in 2024-25 to £3,000.
- Electric cars, vans and motorcycles to pay road taxes from April 2025.
- Household energy price cap extended for one year beyond April 2023, with typical bills capped at £3,000 a year instead of £2,500.
- Households on means-tested benefits will get £900 support payments in 2023.
- £300 payments to pensioner households, and £150 for individuals on disability benefit.
- Windfall tax on profits of oil and gas firms increased from 25% to 35% and extended until March 2028.
- New 45% tax on companies that generate electricity, to apply from January 2023.
For HMRCs Statement: click here