Autumn Statement – Basic-rate income tax remains at 20% “indefinitely”.
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.
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.
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.
Capital Gains Tax cut to the annual exempt amount, over the next two years.
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.
The dividend allowance will be slashed from £2,000 to £1,000 from April 2023 and then again to £500 the following year.
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.
The UK personal allowance, tax rates and bands for the tax year 2022/23 were announced by the Chancellor in the October 2021 Budget.