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<\/a><\/figure><\/div>\n\n\n\nFurthermore, Sunak boosted struggling businesses with premises by revealing a five-point plan to retain and revamp business rates in England. Consequently, he’s cancelling the multiplier for 2022\/23 and confirming revaluations will take place every three years.<\/p>\n\n\n\n
In addition, the Treasury took the unusual step of announcing several key measures well in advance of the day of the Autumn Budget Announcement.<\/p>\n\n\n\n
We already knew that several key tax rates and thresholds were frozen last spring up to and including 2025\/26. News of the national living wage increasing by 6.6% was already common knowledge before the Autumn Budget was announced.<\/p>\n\n\n\n
Last month, we heard the triple-lock would be suspended for a year as inflation continues to soar. <\/p>\n\n\n\n
Additionally, the 1.25% National Insurance contributions (NICs) increase from April 2022 served to frustrate some company directors of owner-managed businesses.<\/p>\n\n\n\n
Directors felt they\u2019d already endured the most of limited government support during COVID-19. Following the Autumn Budget, they\u2019re now being asked to cover the cost. <\/p>\n\n\n\n
Alcohol duties, for example, will be \u201cradically simplified\u201d. Meanwhile, pub landlords will be toasting the new \u2018draught relief\u2019 which lowers duties applying to draught beers and ciders by 5%. <\/p>\n\n\n\n
Moreover, there was no real mention of climate change. However, he mentioned the decision to introduce a cheaper, domestic band for air passenger duty.<\/p>\n\n\n\n
Further to this, there some policy changes not announced in the Autumn Budget speech. Instead, these were squirreled away in background papers.<\/p>\n\n\n\n
Personal tax<\/h2>\n\n\n\n<\/a>Rates & allowances<\/h3>\n\n\n\nThe tax-free personal allowance throughout the UK remains the same. To clarify this will stay at \u00a312,570 for the 2022\/23 tax year.<\/p>\n\n\n\n
Furthermore, the basic-rate band stays at \u00a337,700, along with the higher-rate threshold at \u00a350,270. Also, the additional-rate band is unchanged at \u00a3150,000. After that, any changes to the thresholds in Scotland should be announced at the Scottish Budget in December 2021.<\/p>\n\n\n\n
The 0% band for the starting rate for savings income is unchanged at \u00a35,000 for the 2022\/23 tax year and applies across the UK.<\/p>\n\n\n\n
The personal savings allowance will remain at \u00a31,000 for basic-rate taxpayers and \u00a3500 for higher-rate taxpayers. However, the allowance is not available to additional-rate taxpayers.<\/p>\n\n\n\n
The transferable marriage allowance stays at \u00a31,260 for the 2022\/23 tax year.<\/p>\n\n\n\n
Dividends<\/h2>\n\n\n\n
Each of the three tax bands will increase by 1.25%, however, the dividend allowance remains at \u00a32,000 for 2022\/23. From 6 April 2022, the basic rate for dividends will rise to 8.75%, additionally, the higher rate will increase to 33.75%, and the additional rate will be 39.35%.<\/p>\n\n\n\n
National living wage<\/h2>\n\n\n\n
The national living wage applicable to over-23s increases by 6.6% from \u00a38.91 to \u00a39.50 an hour, from 1 April 2022.<\/p>\n\n\n\n
National Insurance contributions<\/h2>\n\n\n\n
The rates at which employees pay class 1 primary contributions and the self-employed pay class 4 National Insurance contributions (NICs) will rise by 1.25%.<\/p>\n\n\n\n
From April 2022, the main class 1 NICs rate for employees will increase from 12% to 13.25% and the main class 4 NICs rate for the self-employed will increase from 9% to 10.25%. The higher rates for both class 1 and class 4 NICs will also increase from 2% to 3.25%.<\/p>\n\n\n\n
From April 2023, this 1.25% health and social care levy will be formally separated out and at this point, the rates of class 1 and class 4 NICs will return to their 2021\/22 levels.<\/p>\n\n\n\n
The threshold for class 1 and class 4 NICs will rise from \u00a39,568 to \u00a39,880 for 2022\/23, while the upper-earnings limit and upper-profits limit will stay at \u00a350,270. At the same time, the class 2 NICs rate which applies to the self-employed will increase from \u00a33.05 to \u00a33.15 per week, while the self-employed small-profits threshold will rise from \u00a36,515 to \u00a36,725.<\/p>\n\n\n\n
<\/a>Capital gains tax (CGT)<\/h2>\n\n\n\nThe annual CGT exempt amount for individuals of \u00a312,300 and \u00a36,150 for trustees of settlements will be maintained at the current levels up to and including the 2025\/26 tax year.<\/p>\n\n\n\n
Further to this, the lifetime limit on qualifying gains for business asset disposal relief will remain at \u00a31m for 2022\/23.<\/p>\n\n\n\n
The lifetime limit for investors\u2019 relief will also be kept at the current level of \u00a310m. However, the 10% tax rate remains unchanged for both reliefs.<\/p>\n\n\n\n
<\/a>Capital gains tax on UK property<\/h2>\n\n\n\nThe time limit to report and pay capital gains tax on the disposal of UK residential property will be increased from 30 days to 60 days.<\/p>\n\n\n\n
This change applies to completion of property sales made on or after 27 October 2021 and will apply to both UK and non-UK residents.<\/p>\n\n\n\n
Where a gain arises from a mixed-use property, only the portion of the gain that is residential property should be reported and paid. To clarify, this measure is only available to UK residents.<\/p>\n\n\n\n
<\/a>ISAs<\/h2>\n\n\n\nAll of the annual subscription limits will be unchanged for 2022\/23. Therefore, ISAs will be \u00a320,000 and for Junior ISAs and child trust funds it will be \u00a39,000.<\/p>\n\n\n\n
<\/a>Pensions<\/h2>\n\n\n\nThe lifetime allowance for pension savings will remain at \u00a31,073,100 until the 2025\/26 tax year.<\/strong><\/p>\n\n\n\nFrom 6 April 2028, the normal minimum pension age where savers can access their pensions without incurring an unauthorised tax charge will rise from 55 to 57 years old.<\/p>\n\n\n\n
<\/a>Making Tax Digital for income tax self-assessment<\/h2>\n\n\n\nThe requirement for sole traders and landlords with income over \u00a310,000 to prepare for Making Tax Digital (MTD) has been delayed by one year. As a result, it will now be introduced from 6 April 2024. However, general partnerships will not be required to join MTD for income tax self-assessment until 6 April 2025.<\/p>\n\n\n\n
<\/a>Inheritance tax<\/h2>\n\n\n\nThe individual nil-rate band will stay at \u00a3325,000 and the residence nil-rate band will also remain at \u00a3175,000. Moreover, the taper threshold for the residence nil-rate band continues to start at \u00a32m.<\/p>\n\n\n\n
<\/a>Basis period reform for the self-employed<\/h2>\n\n\n\nCurrently, a business\u2019s profit or loss for a tax year is usually the profit or loss for the year up to the accounting date that ends within the tax year, called the \u2018basis period\u2019.<\/p>\n\n\n\n
With effect from 6 April 2024, a business\u2019s profit or loss for a tax year will be the profit or loss arising in the tax year itself, regardless of its accounting date. This measure removes the basis period rules and prevents any further overlap relief.<\/p>\n\n\n\n
On transition to the tax year basis from 6 April 2023, all businesses basis periods will be aligned to the tax year and all outstanding overlap relief given.<\/p>\n\n\n\n
<\/a>Discovery assessments<\/h2>\n\n\n\nLegislation will be passed to confirm that HMRC may use discovery assessments to recover tax charges relating to the high income child benefit charge, Gift Aid donations and certain pension charges.<\/p>\n\n\n\n
The tax-free personal allowance throughout the UK remains the same. To clarify this will stay at \u00a312,570 for the 2022\/23 tax year.<\/p>\n\n\n\n
Furthermore, the basic-rate band stays at \u00a337,700, along with the higher-rate threshold at \u00a350,270. Also, the additional-rate band is unchanged at \u00a3150,000. After that, any changes to the thresholds in Scotland should be announced at the Scottish Budget in December 2021.<\/p>\n\n\n\n
The 0% band for the starting rate for savings income is unchanged at \u00a35,000 for the 2022\/23 tax year and applies across the UK.<\/p>\n\n\n\n
The personal savings allowance will remain at \u00a31,000 for basic-rate taxpayers and \u00a3500 for higher-rate taxpayers. However, the allowance is not available to additional-rate taxpayers.<\/p>\n\n\n\n
The transferable marriage allowance stays at \u00a31,260 for the 2022\/23 tax year.<\/p>\n\n\n\n
Dividends<\/h2>\n\n\n\n
Each of the three tax bands will increase by 1.25%, however, the dividend allowance remains at \u00a32,000 for 2022\/23. From 6 April 2022, the basic rate for dividends will rise to 8.75%, additionally, the higher rate will increase to 33.75%, and the additional rate will be 39.35%.<\/p>\n\n\n\n
National living wage<\/h2>\n\n\n\n
The national living wage applicable to over-23s increases by 6.6% from \u00a38.91 to \u00a39.50 an hour, from 1 April 2022.<\/p>\n\n\n\n
National Insurance contributions<\/h2>\n\n\n\n
The rates at which employees pay class 1 primary contributions and the self-employed pay class 4 National Insurance contributions (NICs) will rise by 1.25%.<\/p>\n\n\n\n
From April 2022, the main class 1 NICs rate for employees will increase from 12% to 13.25% and the main class 4 NICs rate for the self-employed will increase from 9% to 10.25%. The higher rates for both class 1 and class 4 NICs will also increase from 2% to 3.25%.<\/p>\n\n\n\n
From April 2023, this 1.25% health and social care levy will be formally separated out and at this point, the rates of class 1 and class 4 NICs will return to their 2021\/22 levels.<\/p>\n\n\n\n
The threshold for class 1 and class 4 NICs will rise from \u00a39,568 to \u00a39,880 for 2022\/23, while the upper-earnings limit and upper-profits limit will stay at \u00a350,270. At the same time, the class 2 NICs rate which applies to the self-employed will increase from \u00a33.05 to \u00a33.15 per week, while the self-employed small-profits threshold will rise from \u00a36,515 to \u00a36,725.<\/p>\n\n\n\n
<\/a>Capital gains tax (CGT)<\/h2>\n\n\n\nThe annual CGT exempt amount for individuals of \u00a312,300 and \u00a36,150 for trustees of settlements will be maintained at the current levels up to and including the 2025\/26 tax year.<\/p>\n\n\n\n
Further to this, the lifetime limit on qualifying gains for business asset disposal relief will remain at \u00a31m for 2022\/23.<\/p>\n\n\n\n
The lifetime limit for investors\u2019 relief will also be kept at the current level of \u00a310m. However, the 10% tax rate remains unchanged for both reliefs.<\/p>\n\n\n\n
<\/a>Capital gains tax on UK property<\/h2>\n\n\n\nThe time limit to report and pay capital gains tax on the disposal of UK residential property will be increased from 30 days to 60 days.<\/p>\n\n\n\n
This change applies to completion of property sales made on or after 27 October 2021 and will apply to both UK and non-UK residents.<\/p>\n\n\n\n
Where a gain arises from a mixed-use property, only the portion of the gain that is residential property should be reported and paid. To clarify, this measure is only available to UK residents.<\/p>\n\n\n\n
<\/a>ISAs<\/h2>\n\n\n\nAll of the annual subscription limits will be unchanged for 2022\/23. Therefore, ISAs will be \u00a320,000 and for Junior ISAs and child trust funds it will be \u00a39,000.<\/p>\n\n\n\n
<\/a>Pensions<\/h2>\n\n\n\nThe lifetime allowance for pension savings will remain at \u00a31,073,100 until the 2025\/26 tax year.<\/strong><\/p>\n\n\n\nFrom 6 April 2028, the normal minimum pension age where savers can access their pensions without incurring an unauthorised tax charge will rise from 55 to 57 years old.<\/p>\n\n\n\n
<\/a>Making Tax Digital for income tax self-assessment<\/h2>\n\n\n\nThe requirement for sole traders and landlords with income over \u00a310,000 to prepare for Making Tax Digital (MTD) has been delayed by one year. As a result, it will now be introduced from 6 April 2024. However, general partnerships will not be required to join MTD for income tax self-assessment until 6 April 2025.<\/p>\n\n\n\n
<\/a>Inheritance tax<\/h2>\n\n\n\nThe individual nil-rate band will stay at \u00a3325,000 and the residence nil-rate band will also remain at \u00a3175,000. Moreover, the taper threshold for the residence nil-rate band continues to start at \u00a32m.<\/p>\n\n\n\n
<\/a>Basis period reform for the self-employed<\/h2>\n\n\n\nCurrently, a business\u2019s profit or loss for a tax year is usually the profit or loss for the year up to the accounting date that ends within the tax year, called the \u2018basis period\u2019.<\/p>\n\n\n\n
With effect from 6 April 2024, a business\u2019s profit or loss for a tax year will be the profit or loss arising in the tax year itself, regardless of its accounting date. This measure removes the basis period rules and prevents any further overlap relief.<\/p>\n\n\n\n
On transition to the tax year basis from 6 April 2023, all businesses basis periods will be aligned to the tax year and all outstanding overlap relief given.<\/p>\n\n\n\n
<\/a>Discovery assessments<\/h2>\n\n\n\nLegislation will be passed to confirm that HMRC may use discovery assessments to recover tax charges relating to the high income child benefit charge, Gift Aid donations and certain pension charges.<\/p>\n\n\n\n
The time limit to report and pay capital gains tax on the disposal of UK residential property will be increased from 30 days to 60 days.<\/p>\n\n\n\n
This change applies to completion of property sales made on or after 27 October 2021 and will apply to both UK and non-UK residents.<\/p>\n\n\n\n
Where a gain arises from a mixed-use property, only the portion of the gain that is residential property should be reported and paid. To clarify, this measure is only available to UK residents.<\/p>\n\n\n\n
<\/a>ISAs<\/h2>\n\n\n\nAll of the annual subscription limits will be unchanged for 2022\/23. Therefore, ISAs will be \u00a320,000 and for Junior ISAs and child trust funds it will be \u00a39,000.<\/p>\n\n\n\n
<\/a>Pensions<\/h2>\n\n\n\nThe lifetime allowance for pension savings will remain at \u00a31,073,100 until the 2025\/26 tax year.<\/strong><\/p>\n\n\n\nFrom 6 April 2028, the normal minimum pension age where savers can access their pensions without incurring an unauthorised tax charge will rise from 55 to 57 years old.<\/p>\n\n\n\n
<\/a>Making Tax Digital for income tax self-assessment<\/h2>\n\n\n\nThe requirement for sole traders and landlords with income over \u00a310,000 to prepare for Making Tax Digital (MTD) has been delayed by one year. As a result, it will now be introduced from 6 April 2024. However, general partnerships will not be required to join MTD for income tax self-assessment until 6 April 2025.<\/p>\n\n\n\n
<\/a>Inheritance tax<\/h2>\n\n\n\nThe individual nil-rate band will stay at \u00a3325,000 and the residence nil-rate band will also remain at \u00a3175,000. Moreover, the taper threshold for the residence nil-rate band continues to start at \u00a32m.<\/p>\n\n\n\n
<\/a>Basis period reform for the self-employed<\/h2>\n\n\n\nCurrently, a business\u2019s profit or loss for a tax year is usually the profit or loss for the year up to the accounting date that ends within the tax year, called the \u2018basis period\u2019.<\/p>\n\n\n\n
With effect from 6 April 2024, a business\u2019s profit or loss for a tax year will be the profit or loss arising in the tax year itself, regardless of its accounting date. This measure removes the basis period rules and prevents any further overlap relief.<\/p>\n\n\n\n
On transition to the tax year basis from 6 April 2023, all businesses basis periods will be aligned to the tax year and all outstanding overlap relief given.<\/p>\n\n\n\n
<\/a>Discovery assessments<\/h2>\n\n\n\nLegislation will be passed to confirm that HMRC may use discovery assessments to recover tax charges relating to the high income child benefit charge, Gift Aid donations and certain pension charges.<\/p>\n\n\n\n
The lifetime allowance for pension savings will remain at \u00a31,073,100 until the 2025\/26 tax year.<\/strong><\/p>\n\n\n\n From 6 April 2028, the normal minimum pension age where savers can access their pensions without incurring an unauthorised tax charge will rise from 55 to 57 years old.<\/p>\n\n\n\n The requirement for sole traders and landlords with income over \u00a310,000 to prepare for Making Tax Digital (MTD) has been delayed by one year. As a result, it will now be introduced from 6 April 2024. However, general partnerships will not be required to join MTD for income tax self-assessment until 6 April 2025.<\/p>\n\n\n\n The individual nil-rate band will stay at \u00a3325,000 and the residence nil-rate band will also remain at \u00a3175,000. Moreover, the taper threshold for the residence nil-rate band continues to start at \u00a32m.<\/p>\n\n\n\n Currently, a business\u2019s profit or loss for a tax year is usually the profit or loss for the year up to the accounting date that ends within the tax year, called the \u2018basis period\u2019.<\/p>\n\n\n\n With effect from 6 April 2024, a business\u2019s profit or loss for a tax year will be the profit or loss arising in the tax year itself, regardless of its accounting date. This measure removes the basis period rules and prevents any further overlap relief.<\/p>\n\n\n\n On transition to the tax year basis from 6 April 2023, all businesses basis periods will be aligned to the tax year and all outstanding overlap relief given.<\/p>\n\n\n\n Legislation will be passed to confirm that HMRC may use discovery assessments to recover tax charges relating to the high income child benefit charge, Gift Aid donations and certain pension charges.<\/p>\n\n\n\n<\/a>Making Tax Digital for income tax self-assessment<\/h2>\n\n\n\n
<\/a>Inheritance tax<\/h2>\n\n\n\n
<\/a>Basis period reform for the self-employed<\/h2>\n\n\n\n
<\/a>Discovery assessments<\/h2>\n\n\n\n