Autumn Budget 2022
Income Tax and National Insurance:
The following are fixed at their current levels until April 2028:
- Personal allowance – £12,570
- Limit of Basic Rate Band – £50,270
- Upper Earnings Limit for National Insurance – £50,270
The effects of inflation means that the value of these thresholds will decline over time.
The additional rate threshold will be lowered from £150,000 to £125,140 from 6 April 2023.
The dividend allowance will reduce from £2,000 to £1,000 from April 2023 and to £500 from April 2024.
Capital Gain Tax (CGT):
The annual exempt amount for CGT will reduce from £12,300 to £6,000 from April 2023 and to £3,000 from April 2024.
Inheritance tax (IHT):
The IHT nil-rate band will continue at £325,000, the residence nil-rate band will continue at £175,000 and the residence nil-rate band taper will continue to start at £2 million.
The qualifying estate of a surviving spouse or registered civil partner can continue to pass on up to £1 million without an IHT liability.
Stamp Duty Land Tax (SDLT):
On 23 September 2022, the nil-rate threshold of SDLT was increased from £125,000 to £250,000 for all purchasers of residential property in England and Northern Ireland, and the nil-rate threshold for first-time buyers was increased from £300,000 to £425,000.
The maximum purchase price for First-Time Buyers Relief was increased from £500,000 to £625,000. This cut will now be temporary, and will remain in place until 31 March 2025.
Company taxes:
The previously announced increase in the rate of corporation tax from 19% to 25% for companies with profits over £250,000 will go ahead from April 2023. Tapering provisions will apply for profits in the range between £50,000 and £250,000.
The level at which employers start to pay Class 1 Secondary NICs will be fixed at the current level of £9,100 until April 2028. The Employment Allowance means that 40% of businesses do not pay NICs and will be unaffected by the change.
Contact Don Fisher for further information.