Against a background of rising inflation and a bleak economic outlook the Chancellor of The Exchequer, Jeremy Hunt, today delivered his Autumn Statement with some eye-watering tax rises and spending cuts worth billions of pounds with the aim of repairing the nation’s finances. The main measures announced were as follows…
Stamp Duty
The stamp duty cuts announced in the mini-Budget will last until March 31 2025. “This is to help the jobs and firms that rely on the housing market through the current challenges, while strengthening the public finances in the longer term,” the Treasury said.
Pensions
Mr Hunt confirmed that the state pension triple lock would remain in place and state pension payments will rise by 10.1pc next April, based on September’s inflation figure. Pensions credit will also rise in line with inflation.
Energy Bills
The Chancellor announced how the energy support package would work after the current scheme ends in April. Average bills will be capped for 12 months at £3,000, which the Chancellor said meant an average of £500 support for all households.
Those who heat their home with oil or LPG will receive help worth £200, up from £100.
National Living Wage
The National Living Wage will rise to £10.42 an hour, its largest ever increase in cash terms. The Treasury said two million people would benefit.
High earners
Mr Hunt confirmed that the threshold for paying the 45p top rate of income tax would be lowered from £150,000 to £125,140.
Taxpayers
The freeze on income tax and National Insurance thresholds – currently frozen until 2025-26 – has been extended by two years until April 2028.
Investors
The tax-free dividend allowance will be reduced to £1,000 in 2023-24 and then to £500 in 2024-25. The annual allowance for capital gains will be reduced in 2023-24 from £12,300 to £6,000 and again to £3,000 in 2024-25.
Electric car drivers
From 2025 electric cars will no longer be exempt from car tax, although the tax rate will be lower than on other cars. Rises will then be limited to 1pc a year for three years.
IHT
The “nil-rate band” – the amount that can be passed on before IHT is due at a rate of 40pc – has been frozen at £325,000 since 2009. The Prime Minister froze the IHT threshold until 2025-26 when he was chancellor and Mr Hunt has now extended the freeze for another two years, until April 2028.
The autumn statement proposals are not yet law and no action should be taken without professional advice