Autumn Statement - Tax Highlights

The Chancellor Jeremy Hunt today set out the government’s revised tax and spending plans in his Autumn Statement, following last month’s reversal of previously announced proposals. The latest key tax-related measures and updates are summarised below.

Autumn Statement

For more information on how the Chancellor’s announcements might impact you, your business or your household, GMcG Chartered Accountants’ 21-page Analysis publication gets behind the detail of the key tax measures. It also provides updates on previous announcements with expert insight and analysis on how you may be impacted. You can download GMcG’s Analysis publication HERE


Income Tax - Additional Rate 45% income threshold reducing from £150,000 to £125,140 from April 2023

Income Tax, National Insurance Contributions and Inheritance Tax – thresholds fixed to April 2028 (previously were fixed until April 2026)

Capital Gains Tax – Annual Exemption currently £12,300, reducing to £6,000 (from April 2023) and to £3,000 (from April 2024)

Dividend Allowance – currently the first £2,000 of annual dividend income is tax-free, reducing to £1,000 from April 2023 and to £500 from April 2024

National Insurance Contributions – Secondary Threshold (the point at which Employer contributions start) fixed at £9,100 to April 2028

National Minimum/Living Wage – rates to increase at April 2023, including rates for employees aged 23+ increasing from £9.50 to £10.42 per hour

Stamp Duty Land Tax - (England and Northern Ireland) the changes announced in September 2022 have been confirmed as a temporary measure until 31 March 2025 and then will revert to pre 23 September 2022 levels

Research and Development tax reliefs – for expenditure on/after 1 April 2023 incurred by Small and Medium Enterprises (SMEs), the additional deduction for qualifying R&D will decrease from a rate of 130% to 86% and the SME tax credit rate will decrease from 14.5% to 10%. The rate of the R&D Expenditure Credit (RDEC) for large companies and SMEs with qualifying RDEC expenditure will increase from 13% to 20%

Value Added Tax – registration and deregistration thresholds fixed at £85,000 and £83,000 until 31 March 2026

Vehicle Excise Duty – to be payable on electric cars, vans and motorcycles from April 2025

Company Car Tax – rates to be fixed until April 2028: Income Tax benefit-in-kind (BIK) charge on electric cars currently 2% of list price until April 2025, increasing by 1% each year thereafter (3% 2025/26, 4% 2026/27, 5% 2027/28); rates for other vehicles increasing by 1% at April 2025 and then fixed until April 2028

Van BIK Charge, Car/Van Fuel BIK Charges – inflationary increases in line with CPI, to be announced in December 2022

Capital Allowances – First Year Allowances for expenditure on electric vehicle chargepoints extended to 31 March 2025 (Corporation Tax) and 5 April 2025 (Income Tax)

Online Sales Tax – the government has decided not to introduce the OST



Income Tax – the following September 2022 proposals (due to come into effect at 6 April 2023) have all been reversed:

  • Reduction of basic rate to 19% - will now remain at 20%
  • Abolition of 45% additional rate and 39.35% dividend rate – these rates will now remain
  • Removal of the 1.25% increase in dividend tax rates - all dividend rates will remain at their higher level

Corporation Tax – the September 2022 announcement that the increase in the Corporation Tax rate to 25% was to be cancelled has been reversed – Corporation Tax will now increase to 25% in April 2023

Stamp Duty Land Tax – the September 2022 changes have been retained but restricted to a temporary measure until 31 March 2025

IR35 – ‘Off Payroll working’ – the September 2022 proposal to abolish the public and private sector ‘off payroll working’ rules from 6 April 2023 has been abandoned

National Insurance Contributions – the September 2022 proposal to remove the additional 1.25% NIC payment has been retained and came into effect at 6 November 2022. The 1.25% Health and Social Care Levy also remains cancelled.

Capital Allowances – the September 2022 announcement making the 100% Annual Investment Allowance (AIA) permanent has been retained and so 100% AIA is now permanently in place

Seed Enterprise Investment Scheme (SEIS)– the September 2022 proposal to increase the availability of SEIS to investors and companies has been retained

Investment Zones – the September 2022 proposal for investment zones is undergoing an overhaul and refocus with more information to follow from the Government

Should you require any further information on how you may be impacted by any of the proposed changes, please contact any member of GMcG’s Tax Team who will be happy to discuss.

Belfast 028 9031 1113  |  Lisburn 028 9260 7355  |  Portadown 028 3833 2801 

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


Lyn Canning Hagan

Director, Tax & VAT Solutions