Autumn Statement 2023 – Our Key Takeaways

Presenting the 2023 Autumn Statement, Mr Hunt decided to prioritise short-term tax cuts, making an immediate move to make a cut to national insurance. The continuing freeze of the various income tax thresholds means that more and more people are being pulled into higher rate tax, perhaps for the first time. Rumoured changes to inheritance tax did not appear, but there is still a chance with the budget taking place in March next year.

Some of the key takeaways of the 2023 Autumn statement include:

• A cut in the main rate of class 1 employee NICs from 12% to 10% taking effect from as soon as 6 January 2024. There will be a reduction in the main rate of class 4 self-employed NICs from 9% to 8% from 6 April 2024.
• Making permanent the full expensing of investments by companies in qualifying plant and machinery so it will continue after April 2026.
• The continued freeze of the main income tax allowances and thresholds, the main national insurance contributions thresholds and the inheritance tax nil rate bands for 2024/25.
• A full triple lock increase of 8.5% for 2024/25 for state pensions and pension credit. But universal credit and working age benefits will increase by just 6.7% in line with CPI inflation to September 2023.
• Freedom for investors to make multiple subscriptions to ISAs of the same type each year from April 2024. Partial transfers of ISAs between providers will also be permitted.
• A 9.8% increase in the national living wage to £11.44 an hour.

While the detailed impact of the Chancellor’s plans is still under scrutiny, you may wish to undertake a personal review of your own position, ahead of the next tax year.  If you have any questions on the Autumn Statement, or if there is anything we can help you with please get in touch with us today.

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Source: TaxBriefs