Autumn Statement 2022

On Thursday 17 November, the Chancellor presented the Autumn Statement. Some highlights are as follows:

Business Tax

• Corporation tax
  As previously announced corporation tax will increase from April 2023 to 25% from the current 19%.
• R&D tax reliefs
  Changes will be made to the rates of relief available for expenditure on or after 1 April 2023.
• SME Scheme
  The additional deduction will decrease from 130% to 86%, and the SME credit rate for loss making companies will decrease from 14.5% to 10%. For loss making companies this means that the benefit is reduced from 33p for every qualifying £ of R&D spend to 18.6p.
• RDEC
  The Research and Development Expenditure Credit (RDEC) rate will increase from 13% to 20%.
  As previously announced qualifying expenditure on consumables costs will be amended to include data and cloud costs, refocusing support towards innovation in the UK, and targeting abuse and improving compliance.
• National Living wage
  This will increase for individuals aged 23 and over to £10.42 an hour from 1 April 2023.
• NIC Secondary Threshold
  The threshold for Class 1 Secondary NICs will be fixed at £9,100 from April 2023 until April 2028.

Personal Tax

• Income tax and NIC thresholds
  
  • Personal allowance and higher rate tax (40%) threshold will remain at £12,570 and £50,270, respectively until April 2028.
  • Additional rate of income tax (45%) threshold will be reduced from £150,000 to £125,140 from 6 April 2023.
  • National insurance thresholds will remain frozen until April 2028.
• Dividend Allowance
  The dividend allowance will be reduced from £2,000 to £1,000 from April 2023, and to £500 from April 2024.
• Inheritance Tax
  Nil rate band will remain as £325,000 until April 2028.
  The residence nil-rate will remain as £175,000. The residence nil-rate band taper will continue to start at £2 million.
• Capital gains tax
  Annual exemption will reduce from £12,300 to £6,000 from April 2023, and from £6,000 to £3,000 from April 2024.
• State pension
  From April the State Pension will increase in line with inflation.
• Stamp Duty Land Tax
  On 23 September 2022, the government increased the nil-rate threshold of Stamp Duty Land Tax (SDLT) from £125,000 to £250,000 for all purchasers of residential property in England and Northern Ireland and increased the nil-rate threshold paid by first-time buyers from £300,000 to £425,000.
  The maximum purchase price for which First Time Buyers’ Relief can be claimed was increased from £500,000 to £625,000. This will remain in place until 31 March 2025.
• VAT
  The VAT registration threshold will remain at £85,000 until April 2026.

If you would like to discuss any of the above please call your usual contact at Corrigan or email pete.edwards@corrigan.co.uk.