Last week, the Chancellor, Jeremy Hunt, delivered the Autumn Statement. His priorities focused on Stability, Growth and Public Services. We have summarised key highlights for businesses and organisations below.
Kirsten Henly, Chief Executive of Kingston First said:
“While the extension of the Business Rates relief scheme is welcomed, we still need fundamental reform of an outdated system which was not mentioned yesterday. It was also disappointing not to have more clarity and certainty on future energy costs for business. Businesses are still going to bear the brunt of high energy bills and rising staff costs and this will bring more uncertainty and challenges for the town centre, businesses and organisations.
We will continue to work with national and industry bodies and partners to make the case to the government for further support and clarity for businesses during the extremely challenging months ahead.”
- The threshold for the 45p additional rate of tax will be lowered to £125,140 from £150,000
- Thresholds on income tax personal allowance, national insurance and inheritance tax will be maintained for further two years to April 2028
- Electric vehicles no longer exempt from Vehicle Excise Duty from April 2025
- The dividend allowance will be reduced from £2,000 to £1,000 next year and then £500 from April 2024
- The annual exemption for capital gains will be reduced from £12,300 to £6,000 next year, then £3,000 from April 2024
Business taxes and Business rates
- £13.6 billion package of support for business rate payers in England to benefit 700,000 businesses
- The multiplier will be frozen in 2023-24
- Revaluation of rateable value will proceed in April 2023 based on valuations in April 2021
- Relief for 230,000 businesses in retail, hospitality and leisure sectors will increase from 50% to 75% (up to 110k per business) next year
- £1.6 billion Transitional Relief scheme to cap bill increases for those who will see higher bills following revaluation of their properties. Small businesses who lose eligibility for either Small Business or Rural Rate Relief as a result of the new property revaluations will see their bill increases capped at £50 a month through a new separate scheme worth over £500 million
- The threshold for employer National Insurance contributions will be fixed until April 2028, but the Employment Allowance will continue to protect 40% of businesses from paying any NICS at all
- Corporation Tax will increase by 5% to 25% on profits over £250k from April 2023
Further information on Business Rates can be found here.
Click here to find out the rateable value of your property from 1 April 2023. For information your levy will continue to be based on your rateable value in 2017.
National Living Wage
- There will be an increase in the National Living Wage from the current level of £9.50 an hour to £10.42 for over-23s
- Energy Price Guarantee support for households will be extended from April 2023, but energy bills will rise from April 2023
- Targeted approach to support businesses post April 2023, but no details of what and who this will benefit
- Temporary measure of windfall tax of 35% increased from 25%
- Oil and gas companies’ tax will increase from 65% to 75% of profits on UK operations – till March 2028 – extended from December 2025