Key points from the Autumn Statement 2023

24 November 2023

A reminder of the Chancellors key points from the Autumn Statement 2023

Employee National Insurance Reduction: Starting January 6th, the Employee National Insurance rate will decrease by 2% to 10%, down from the previous 12%.
Self-Employed Class 2 NICs cut: Effective from April, self-employed individuals earning over £12,570 will no longer be required to pay the weekly £3.45 Class 2 National Insurance contributions.
Class 4 NICs Reduction: Commencing April, a 1% reduction in Class 4 National Insurance contributions will apply to profits ranging from £12,570 to £50,270.
National Living Wage Increase: From April, the National Living Wage will rise from £10.42 to £11.44 per hour, extending to individuals over 21 years old.
State Pensions Up: Starting April, the state pension will experience an 8.5% increase.
Universal Credit Boost: Effective April, there will be a 6.7% rise for those receiving Universal Credit.
Permanent Full Expensing Tax Break: Businesses can now permanently deduct machinery and equipment costs from their profits.
Extended Discount for Hospitality, Leisure, and Retail: The 75% business rate discount for the hospitality, leisure, and retail sectors will remain in place for an additional year.

Homebuyers in Stamp Duty Sprint Before April Hike

by PH186232 • 20 February 2025

With the 1st April deadline looming, its reported that 550,000 homebuyers are racing to complete purchases before stamp duty jumps back to its 2022 levels. We have read that sales awaiting completion are up 25% from last year, with an average five-month wait putting pressure on buyers to beat the deadline. Currently, first-time buyers pay no stamp duty on homes up to £425,000 when purchasing a property worth up to £625,000, but from 1 st April, that drops to £300,000. The upper limit will also fall from £625,000 to £500,000. It's not just the first-time buyers taking a hit, currently stamp duty is only owed on amounts over £250,000, however from 1 st April, only the first £125,000 will be exempt. Despite the cost increase, it looks like most buyers are still pressing ahead, with some even renegotiating offers to offset the hike. According to our research, regardless of the impending cost increases, property experts such as Rightmove are predicting the demand to stay strong; especially if interest rates continue to fall. With mortgage rates already dipping below 4%, we believe buyers remain hopeful for a more affordable market ahead.