2023 Autumn Statement

autumn budgert

On 22 November 2023, Jeremy Hunt delivered the ‘Autumn Statement for Growth’.

Some of the key highlights include the following:

  • Income tax rates: the basic rate will remain at 20%, the higher rate at 40% and the additional rate at 45% for 2024/25. The government reduced the point at which individuals pay the additional rate of 45% from £150,000 to £125,140 for the current tax year and this will continue for 2024/25.
  • The income tax personal allowance and basic rate limit are fixed at their current levels until April 2028. They are £12,570 and £37,700 respectively.
  • From 6 April 2024 the rates of taxation on dividend income will remain as follows:   The dividend ordinary rate – 8.75%; The dividend upper rate – 33.75% ; The dividend additional rate – 39.35%.
  • The main rate of Class 1 employee NICs will be reduced from 12% to 10% from 6 January 2024.
  • Class 2 Self-employed NICs will be abolished  from 6 April 2024.
  • The main rate of Class 4 Self-employed NICs will be reduced from 9% to 8% from 6 April 2024.
  • The rates of corporation tax will remain unchanged.
  • The VAT registration and deregistration thresholds will not change for a further period of two years from 1 April 2024, staying at £85,000 and £83,000 respectively.
  • The capital gains tax annual exempt amount will be reduced from £6,000 to £3,000 from April 2024.

For full details of the budget, please use the following link: Wettone_Matthews_(W-1599167)_FSS_PDF_Nov23.pdf (mercia-group.com)