| Chancellor Jeremy Hunt today announced a series of new measures designed to reduce the Government’s deficit, tackle inflation and restore confidence in the UK’s economy. Income Tax, National Insurance and IHT The point at which the 45% rate of income tax applies will be reduced from £150,000 to £125,140 from 6 April 2023. The allowances and bands for income tax, national insurance and inheritance tax will be frozen until April 2028. Employers’ NIC thresholds to be frozen. Dividend Allowance and CGT The Dividend tax free allowance will be reduced from £2,000 to £1,000 from 6 April 2023, and then to £500 from 6 April 2024. Capital Gains Tax Annual Exemption Amount is to reduce from £12,300 to £6,000 from April 2023 and then to £3,000 from April 2024. Research and Development For expenditure on or after 1 April 2023 the RDEC rate will increase from 13% to 20%. The SME additional deduction will reduce from 130% to 86% and the SME credit will decrease from 14.5% to 10%. Business Rates Planned revaluation of properties to go ahead. Though additional support will mean that two-thirds of business will not pay higher rates next year. This support includes the Multiplier Freeze, the Transitional Relief Schemes, the Retail Hospitality and Leisure Relief and the Supporting Small Businesses Scheme. VAT VAT registration threshold to be held at £85,000. National Living Wage For over 23s to increase to £10.42/hr from 01 April 2023. Windfall Tax Windfall tax affecting oil and gas industry to increase from 25% to 35% and an electricity generator tax set at 45%. Inflation Forecasts The OBR forecasts inflation to hit 9.1% this year and 7.4% next year. Energy Price Guarantee The price cap will increase from April 2023 to bring the average cost of energy for a typical house to £3,000 per year for a typical household., instead of £2,500 Benefits and Welfare To increase by 10.1% next year. Pensions Pensions triple lock to be protected. Pension credit to increase by 10.1%. |
Budget summary – 30 October 2024
Chancellor Rachel Reeves has delivered Labour’s first Budget since 2010....
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