Autumn Statement 2023 - Tax Highlights

In his Autumn Statement on Wednesday 22 November, Chancellor Jeremy Hunt announced several tax-related proposals which are summarised below.

Autumn Statement - Tax Highlights

National insurance Contributions – all rate bands to remain at current levels until 2027/28

National Insurance Contributions (Employees) – Class 1 NIC main rate reduced to 10% from 12%, from 6 January 2024

National Insurance Contributions (Self employed) – compulsory Class 2 NIC (currently £3.45 per week) abolished from 6 April 2024. Class 4 NIC main rate reduced to 8% from 9%, from 6 April 2024

National Living Wage - rate increased to £11.44 per hour from 1 April 2024; age threshold lowered from 23 to 21

Income Tax (Benefits in kind) – company van and car/van fuel benefit charges remain unchanged for 2024/25

Capital Allowances – 100% tax relief (‘full expensing’) for capital expenditure incurred by companies made permanent (originally due to expire 31 March 2026)

Cash Basis of accounting – expanding the scope of the cash basis for unincorporated trading businesses  – removal of the £150,000 and £300,000 thresholds from April 2024

Research & Development tax reliefs – merger of the Small or Medium Enterprises (SME) and R&D Expenditure Credit (RDEC) schemes from April 2024: rate offered under the merged scheme to be at the RDEC 20% rate

Annual Tax on Enveloped Dwellings – annual charges to increase by 6.7% from April 2024

Income Tax, Inheritance Tax, Stamp Duty Land Tax - no changes announced, all remain fixed at levels previously announced

As many of the announcements are subject to legislation, the details may change during the legislative process and should therefor be kept under review.

GMcG's detailed Autumn Statement Analysis publication looks more closely at the Chancellor's announcements and can be viewed on our website - HERE


Should you require further information on how these changes might impact upon you or your business, please contact our Tax Team who will be happy to advise - HERE