In a bid to address the repercussions of September's mini-budget and its subsequent (partial) reversal, earlier today Jeremy Hunt stood up to deliver his Autumn Statement, setting out to tackle inflation and "balance the books".
The key takeaways for individuals:
- The additional rate income tax threshold will reduce to income over £125,140 from £150,000 in the tax year 2023/24. Otherwise, income tax thresholds and the main personal allowance remains frozen until the end of the tax year 2027/28. The dividend allowance will decrease from £2,000 to £1,000 in 2023/24, and further to £500 in 2024/25.
- The CGT annual exempt amount (AEA) will fall to £6,000 in 2023/24 and further to £3,000 2024/25. Whilst unconfirmed it is expected that the AEA for trusts (currently 50% of the personal amount) will drop accordingly.
- The SDLT reduction announced at the mini-budget will stay until 31 March 2025.
- The Inheritance Tax nil rate band and main National Insurance thresholds remain frozen at current levels until the end of 2027/28.
Despite speculation, no increases to CGT rates or wholesale reforms to the non-dom regime were announced – although a specific measure which will effectively deny the remittance basis for distributions and gains on overseas (close) company shares issued in exchange for UK company shares has been introduced with immediate effect.
For businesses, the Annual Investment Allowance will remain at a permanent level of £1m from 1 April 2023 against the (already confirmed) reinstatement of the corporation tax rate increase to 25%.
This summary is intended to provide a first point of reference for current developments in aspects of the law. It should not be relied on as a substitute for professional advice.