Autumn Statement 2022

Following the Chancellor’s Autumn Statement announced on 17 November, we have highlighted some of the more salient points:

• The threshold for the additional rate of tax will be reduced to £125,140 from £150,000 from 6 April 2023, bringing more individuals into the higher tax bracket of 45%.
• Both the basic rate and higher rate tax threshold limits that are currently frozen will be extended by a further 2 years until April 2028.
• The employer’s National Insurance threshold limit of £9,100 that is currently frozen will be extended by a further 2 years until April 2028.
• The dividend tax allowance of £2,000 will be reduced to £1,000 from 6 April 2023 and to £500 from April 2024.
• The capital gains tax annual exemption of £12,300 will be cut to £6,000 from 6 April 2023 and reduce to £3,000 from April 2024.
• The VAT registration threshold of £85,000 will remain at the current level until April 2026.
• The national minimum wage rate for those aged 23 and over will increase to £10.42 from April 2023.
• From April 2025 Vehicle Excise Duty will be introduced on electric cars, vans, and motorcycles.

HMRC also remain committed to bolster the government funds and close the tax gap by investing in the compliance areas of tackling tax fraud and reducing non-compliance by wealthy taxpayers.