The Chancellor Jeremy Hunt has announced a wide range of major changes affecting Capital Gains Tax, Electric Vehicles and Dividends in Autumn Statement.
The Chancellor and The Prime Minister will be hoping that these measures will help reduce inflation and other factors affecting the economy at present.
The Chancellor has announced the following:
Tax (as a percentage of GDP) will increase by just 1% over the next five years
The threshold on personal tax at which the 45p rate becomes payable from £150,000 to £125,140. Those earning £150,000 or more will pay just over £1,200 more a year.
The exempt amount for capital gains tax will be cut from £12,300 to £6,000 next year and then to £3,000 from April 2024
From April 2025, electric cars will no longer be exempt from Vehicle Excise Duty
The UK will continue to maintain the defence budget at least 2% of GDP to be consistent with our NATO commitment.
From 1 January until March 2028 he will increase the energy profits levy from 25% to 35%
Stamp duty cuts will stay in place until March 2025
While the employers’ national insurance contributions threshold is frozen until April 2028, the employment allowance will be retained at its new, higher level of £5,000 until March 2026;
Government will introduce temporary 45% levy on electricity generators from 1 January.
The chancellor has said he will also invest an extra £2.3bn per year in schools.
More soon.
