Simpson Wood Limited Autumn Statement 2022

4 AUTUMN STATEMENT l 17 November 2022 PERSONAL TAX Income tax The personal allowance will remain at £12,570 for an extra two tax years until 5 April 2028 and the higher rate threshold will stay at £50,270, the levels that first took effect in 2021/22. From 2023/24, the 45% additional rate threshold will be reduced from £150,000 (the level set in 2010/11) to £125,140. In Scotland, the higher and top (additional) rate thresholds for non-savings, nondividend income will be announced in the Scottish Budget on 15 December. The blind person’s allowance will be increased to £2,870 for 2023/24. Dividend tax The dividend allowance will be halved to £1,000 for 2023/24 and halved again in 2024/25 to £500. National insurance contributions (NICs) The class 1 primary threshold and class 2 lower profits limit will remain aligned with the personal allowance (£12,570) until April 2028. The upper earnings limit and class 4 upper profits limit will remain aligned to the higher rate threshold at £50,270 through to April 2028. The lower earnings limit (£6,396) and the small profits threshold (£6,725) will remain unchanged in 2023/24. For 2023/24, the class 2 rate will be £3.45 a week and the voluntary class 3 rate will be £17.45 a week. Capital gains tax In 2023/24, the annual exempt amount for individuals and personal representatives will be reduced to £6,000 and then halved to £3,000 in 2024/25. The annual exempt amount for most trusts will be cut to £3,000 (minimum £600) in 2023/24 and then halved in the following year.