Autumn Statement 2023 | Rayner Essex LLP

Autumn Statement 2023

On November 22, 2023, Jeremy Hunt unveiled the ‘Autumn Statement for Growth,’ emphasising the importance of stimulating economic growth against a backdrop of improving economic conditions.

The Chancellor introduced 110 measures designed to support businesses, underscoring a commitment to fostering expansion. Notable elements of the statement included significant changes to National Insurance and the reform of work-related state benefits. In this overview, we will explore the key highlights and implications of Jeremy Hunt’s Autumn Statement, particularly in the context of stimulating economic growth.

Autumn Statement updates include:

  • Income tax will remain the same, however the additional rate of 45% has now been reduced from £150,000 to £125,140 for the current tax year and this will continue for 2024/25.
  • Dividend Allowance will be reduced from £1,000 to £500 from 6 April 2024.
  • The main rate of Class 1 employee NICs will be cut from 12% to 10%, and Class 1 employee NICs will be cut from 12% to 10% from 6 January 2024.
  • The main rate of Class 4 self-employed NICs will be cut from 9% to 8% from 6 April 2024.
  • Class 2 self-employed NICs will be abolished from 6 April 2024.
  • The NMW will be increased to £11.44 from April 2024, and £8.60 for 18-20 year-olds and £6.40 for 16-17 year-olds and apprentices.
  • Individual Savings Accounts limits will be frozen, however multiple subscriptions to ISAs of the same type every year will be allowed as well as partial transfers of ISA funds.
  • The Lifetime Allowance (LA) ceiling of £1,073,100 will be abolished from 2024/2025.
  • Full Expensing, which allows a business to claim 100% tax relief on capital expenditure, will be made permanent.
  • The existing Research and Development Expenditure Credit (RDEC) and SME schemes will be merged, with expenditure incurred in accounting periods beginning on or after 1 April 2024, and tax applied to loss-makers will be lowered from 25% – 19%.
  • Cash basis of accounting will be made the default position for the self-employed from 2024/25, with an alternative to opt for the accruals basis, together with technical changes to the regime.
  • The capital gains tax annual exempt amount will be reduced from £6,000 to £3,000 from April 2024.

To find out more about the highlights and to download the complete Autumn Statement guide click the link below.

Get in touch

If you have any questions relating to any of the announcements covered in this Autumn Statement or would like more detailed, one-to-one advice on any of the content provided and want to find out what implications these announcements will have on your business, please do not hesitate to contact us by completing the form below or get in touch with one of our tax experts.

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