Today’s statement feels like a full budget. With inflation at 11.1% and a recession confirmed, Mr Hunt
restated that as Chancellor he seeks stability, growth and to protect public services. In his quest to do
so he has made significant tax changes.
Individuals
Tax -
Income Tax – all personal allowances have been frozen until April 2028.
The basic and higher rate thresholds for income tax will remain but the additional rate threshold where 45% tax is payable will be reduced to £125,140 from April 2023.
Dividend Allowance –will be reduced from £2,000 to £1,000 in April 2023 and to £500 the following year.
State Pension – The Triple lock has been maintained and the pension will be increased by £870 p.a. from April 2023.
Capital Gains Tax – the annual exemption will be reduced from £12,300 to £6,000 in April 2023 and again to £3,000 in April 2024.
Inheritance Tax – the allowance remains £325,000.
SDLT – the changes to SDLT will remain in force until March 2025 with the housing market expected to fall next year.
ATED – the Annual Tax on Enveloped Dwellings charges will be increased by 10.1% in April
2023.
Energy – The energy price guarantee will remain in place until April 2023. From that date it
will rise to £3,000. Support will be provided to assist the most vulnerable in society.
Business
Corporation Tax – The planned increase in Corporation Tax to 25% (for companies with
profits over £250,000) will go ahead from April.
Energy Profits Levy ‐ the levy on windfall profits will be increased from 25% to 35% until
March 2028. A new temporary Electricity Generator Levy of 45% will be introduced from
January 2023.
17 November 2022
Contacts
If you require assistance in relation to the above and/or would like to discuss anything further, please do not hesitate to contact info@act.london or your usual A.C.T. contact.