There were a number of changes, here goes:
- Tax allowances and thresholds will be frozen until April 2028. You can still earn up to £12,570 and not pay any tax and then 20% basic rate tax up to £50,270.
- The income tax additional rate threshold has been reduced down to £125,140 from £150,000. Therefore earnings from: £50,270 to £100,000 the rate of income tax is 40%, from £100,000 – £125,140 the marginal rate goes up to 60% (due to the allowance being removed) and then 45% above £125,140.
- The CGT annual exemption will be reduced down to £6,000 from £12,300 from April 2023. It will be reduce down further to £3,000 in April 2024. The rates will stay at 10% and 20% for a basic and higher tax payer accordingly. (18% and 28% for gains on property respectively).
- The dividend allowance will be halved down to £1,000 from £2,000 in April 2023 and halved again in 2024. The dividend tax rates will remain at 8.75%, 33.75% and 39.35% for basic, higher and additional rate taxpayers respectively.
- One positive announcement for pensioners is that the triple lock will be maintained guaranteeing a 10.1% CPI-based increase for next April.
- The changes in National Insurance (NI) that were implemented this year have been scrapped and they are now kept in line with the annual personal allowance of £12,570. Class 1 employees pay: 2% between £9,100 and £12,570, 12% between £12,570 and £50,270. Employers pay 13.8% above £9,100. The lower earnings limit will be frozen at £6,240.
- Corporation tax will rise to 25% as originally planned in April 2023. 19% for profits below £50,000 and tapering up to £250,000. The Annual Investment Allowance of £1m has been made permanent. Also allowances for electric vehicle charge points have been extended to 2025.
- Increases have also been made to the Seed Enterprise Investment Scheme and also to Company Share Options Plans.
- The government will help out with your energy bills by paying £400 over the next 6 months (starting with £66 this month) directly to your energy supplier.
- The chancellor kept the changes to Stamp Duty Land Tax. The residential nil rate tax threshold was kept at £250,000. The threshold for First Time Buyers was increased to £425,000 from £300,000, with the maximum increased to £625,000.
