Compliance, Moorgate update, Tax advice

What you need to know about the November 2022 Autumn Statement and your Tax

The November 2022 Autumn Statement

Moorgate offers a comprehensive tax summary of the Autumn Statement by the Chancellor of the Exchequer, Jeremy Hunt. The Autumn Statement included a significant number of new tax announcements summarised as follows:

  • Headline rates of taxation will not be increased
  • The Government to reduce the threshold at which the 45p rate becomes payable, from £150,000 to £125,140 from 6th April 2023
  • The income tax personal allowance higher rate threshold; main NI thresholds and inheritance tax thresholds will all be maintained at current levels for a further two years ie: until April 2028
  • The Government will reduce the Dividend Allowance from £2,000 to £1,000 from April 2023, and to £500 from April 2024
  • The Government will reduce the Capital Gains Tax Annual Exempt Amount from £12,300 to £6,000 from April 2023 and to £3,000 from April 2024
  • Electric vehicles are no longer to be exempt from Vehicle Excise Duty from April 2025
  • The Stamp Duty cuts announced in September will remain in place only until March 2025
  • The Government will fix the level at which employers start to pay Class 1 Secondary NICs for their employees (the Secondary Threshold) at £9,100 from April 2023 until April 2028
  • From April 2023, the rate of Diverted Profits Tax will increase from 25% to 31%
  • The VAT registration and deregistration thresholds will not change for a further period of 2 years from 1 April 2024
  • Legislation will be brought forward so that shares and securities in a non-UK company acquired in exchange for securities in a UK close company will be deemed to be located in the UK
  • The Government will not be proceeding with an Online Sales Tax
  • For expenditure on or after 1st April 2023, the Research and Development Expenditure Credit (RDEC) rate will increase from 13% to 20%, the small and medium-sized enterprises (SME) additional deduction will decrease from 130% to 86%, and the SME credit rate will decrease from 14.5% to 10%.
  • The Government will proceed with the revaluation of business properties from April 2023, with a new transitional relief scheme to benefit 7,500 businesses
  • The previously announced changes to the Corporation Tax Threshold will go ahead.

Are you affected by the Autumn tax changes?

These tax changes will affect many individuals and businesses. Moorgate are pleased to offer expertise and advice on a wide range of tax matters including self-assessment tax returns, dividend tax, inheritance tax, tax planning, US tax returns, property tax and capital gains tax.

Our tax experts would be happy to offer a 30-minute free consultation to anyone who may be worried about how the changes announced last week will affect them or their business.

Please call us on 01883 730044 to make an appointment to see a member of our specialist tax team in our Oxted, Wallington or Bromley office.