Autumn statement key tax announcements
- The threshold for which the 45p rate becomes payable has been reduced from £150,000 to £125,140
- The allowance for dividends will be cut from £2,000 to £1,000 as of next year, and then to £500 from April 2024.
- The current capital gains tax exemption amount of £12,300 per year will be reduced to £6,000 next year, and then to £3,000 from April 2024.
- It was confirmed that the main rate of corporation tax will increase to 25 per cent for companies with profits over £250,000 will go ahead from 1 April 2023.
- Electric vehicles will no longer be exempt from vehicle excise duty as of April 2025.
- Cuts to stamp duty announced in the Mini Budget will remain in place until 31st March 2025.
- The new, higher level of £5,000 for the employment allowance will stay in place until March 2026.
- R&D tax relief for SMEs will see the credit rate dropped to 10 per cent from 14.5 per cent, the deduction rate reduced to 86 per cent from 130 per cent, and the rate for the separate R&D expenditure credit raised from 13 per cent to 20 per cent for the large scheme.
- Major oil and gas companies will have their windfall tax hiked to 35 per cent from 25 per cent, and electricity generators will be subject to a 45 per cent energy profits levy.
- For over two thirds of properties, business rates will not increase at all next year. The chancellor claims that hundreds of thousands of pubs, restaurants, and smaller high-street shops will profit by £14 billion over five years.
