Vote-winning announcements are always expected from a Chancellor’s Budget in an election year. Despite the stagnant economy and limited fiscal headroom, Jeremy Hunt still announced a few tax cuts and other surprises.
Spring Budget 2024
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Personal tax
Autumn Statement 2022 – Personal changes
Autumn Statement – Basic-rate income tax remains at 20% “indefinitely”.
Autumn Statement 2022 – Additional-rate income tax
Additional-rate income tax – One of the biggest announcements made by the Chancellor was the lowering of the additional-rate tax threshold from £150,000 a year to £125,140 as of 6 April 2023.
Autumn Statement 2022 – Income tax thresholds
The personal allowance threshold will remain frozen for a further two years, continuing until 2028, along with the higher-rate threshold and the National Insurance contributions (NICs) thresholds.
Autumn Statement 2022 – National insurance
National insurance – In July 2022, NICs thresholds were increased to be brought in line with the income tax personal allowance, and fixed until April 2026.
Autumn Statement 2022 – Capital Gains Tax
Capital Gains Tax cut to the annual exempt amount, over the next two years.
Autumn Statement 2022 – Inheritance Tax
The inheritance tax nil-rate is currently set at £325,000 until April 2026 and will remain at this rate for a further two years until April 2028.
Autumn Statement 2022 – Dividend Allowance
The dividend allowance will be slashed from £2,000 to £1,000 from April 2023 and then again to £500 the following year.
Reversal of emergency budget 2022 – income tax and dividend tax
Planned changes to reduce the income tax rate and the dividend tax rates have been reversed in the latest announcement by the chancellor. Income tax will remain at 20% for basic rate tax payers. Dividend taxes will continue at their current rates.
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