Autumn Budget Lowdown
The Autumn budget was announced by Jeremy Hunt last week, it focused on 3 key areas stability, growth and public services.
We have summarised a few of the main points:
Tax
- Personal allowance will stay at £12,570 until 2028
- Higher rate tax threshold will stay at £50,271 until 2028
- Additional rate tax will be reduced from £150,000 to £125,140
- The allowance for dividends that is tax free will be reduced to £1,000 in 2023, and then reduced again to £500 in 2024
- Annual Exempt Amount for Capital Gains Tax will be reduced to £6,000 from £12,300 in April 2023 and then again to £3,000 in April 2024
- Employers NIC frozen until 2028 and employment allowance will remain at its new level of £5,000 until March 2026
- Electric vehicles will not be exempt from vehicle excise duty from April 2025
- Previously announced cuts on Stamp Duty will remain but only until 31 March 2025
Minimum Wage
- The new hourly national minimum wage will increase from 1st April 2023, the new amounts are as follows:
Apprentices - £5.28
Age 16-17 - £5.28
Age 18-20 - £7.49
Age 21-22 - £10.18
23 and over - £10.42
This is still below the ‘real living wage’ which is £11.95 in London and £10.90 outside of London.
Benefits
Pensions, universal credit, disability benefits and other means tested benefits will increase in line with inflation by 10.1% in April 2023.
The whole budget can be read on the gov website
