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Autumn Budget Statement – Thursday 17 November 2022

Chancellor Jeremy Hunt delivered his Autumn Statement to parliament today, outlining plans designed to address rising prices and begin to restore the UK’s credibility with international markets.

Hunt said he wants to repair the £50bn fiscal black hole, keep downward pressure on inflation, and that he is prepared to make difficult decisions on tax and spending to tackle the cost-of-living-crisis and to rebuild the economy.

Here we round up some of the key points from today’s statement:

State Pension

The state pension triple lock will be retained, seeing retirement benefits for millions of pensioners across the UK increase in line with inflation.

The triple lock means the state pension increases in line with whichever of these measures is highest: inflation, as measured by the Consumer Prices Index in September; the average increase in wages across the UK; or 2.5%.

It comes into effect each April and is due to go up by 10.1% or about £880 – its largest-ever increase.

Taxation

  • The threshold at which the top rate of income tax is paid will be reduced from £150,000 to £125,140. Personal allowance higher rate 2021/22 threshold levels will be maintained until 2026.The move will see some 250,000 Britons pulled into the top bracket of income tax.
  • The government is halving the dividend tax allowance, falling from £2,000 to £1,000 next year and to £500 from 2024.
  • Annual capital gains exemption will fall from £12,300 to £6,000, and then to £3,000 from April 2024.
  • Employers’ National Insurance Contributions (NICs) threshold will be frozen until April 2028. However, employment allowance will be retained at its new, higher level of £5,000. According to Hunt, some 40% of all businesses will still pay no NICs at all. Meanwhile, the VAT registration threshold will be maintained at its current level until March 2026.
  • The inheritance tax (IHT) freeze will remain in place until 2028. The standard IHT rate is 40%, with the decision on the freeze an expected one which comes against the backdrop of one of the most turbulent economic years in British history.

Stamp Duty

Stamp duty cuts confirmed in the Mini Budget will stay in place until 31 March 2025.

Stamp duty is a tax levied on those buying property or land above a certain value. Currently, all house-buyers in England and Northern Ireland must pay stamp duty on properties over £125,000. First-time buyers are exempt from stamp duty on properties worth up to £300,000, or, in higher-priced areas such as London, on the first £300,000 on properties costing up to £500,000.