The long-awaited Autumn Statement from Chancellor Jeremy Hunt was released today. In order to weather the nation’s economic “storm,” the chancellor proposed a number of “tough measures,” including tax hikes and increases in energy costs. Below we’ve outlined the key points for businesses…
- In addition to the already existing four-year freeze, the chancellor announces a number of tax threshold freezes, notably for income tax and inheritance tax for a further two years, until April 2028.
- Dividend allowances will be reduced. A reduction will also be made to the yearly exempt amount for capital gains tax.
- The £150,000 cutoff point for the 45p extra rate of tax will be changed to £125,140.
- Starting in 2025, electric cars will no longer be exempt from vehicle excise charge.
- Windfall taxes, which include a new, temporary 45% levy on electricity producers, will raise £14 billion.
- With an almost £14 billion tax reduction on business rates, according to Hunt, the government will lessen the impact to businesses paying business rates. This will help roughly 700,000 businesses.
- Employment allowance will be raised to a higher level of £5,000.
We hope this has summarised the key points of the Autumn Statement for businesses, you can view a more in depth guide on the government website. Please get in touch with us at firstname.lastname@example.org if your business requires our assistance.