Autumn Budget Roundup
In his autumn statement, Chancellor Jeremy Hunt set out plans to increase taxes and reduce spending to narrow the gap between the government’s income and outgoings.
But what does this mean for you and your business?
We’ve highlighted three key takeaways on what’s changed:
- Income tax
At the moment there is little impact for businesses in Scotland. This will be determined in the Scottish budget due to be held on 15th December. We’ll keep you up to date and informed on income tax changes at this time.
- Dividend allowances
The annual dividend allowance - the amount of dividend income you do not have to pay tax on - will fall from £2,000 in the current tax year to £1,000 in 2023/24 and £599 in 2024/25. The rate of dividend tax will remain at 8.75% for basic-rate taxpayers and 10% for some basic-rate taxpayers (28% or 18% on gains from residential property).
- Capital Gains Tax
The chancellor announced that the annual CGT exemption will be cut from £12,300 in the current tax year to £6,000 in 2023/24 and £3,000 in 2024/25. Any profits ('gains') that exceed the exemption will be taxed at the existing rates of 20% for higher and additional-rate taxpayers and 10% for some basic-rate taxpayers (28% or 18% on gains from residential property).
With most other thresholds frozen until 2028 it was a budget which emphasised spending and reducing deficit, and reassuring the markets by demonstrating fiscal responsibility.