Autumn Budget 2022 Overview

Today Chancellor, Jeremy Hunt, delivered the Autumn Budget. The key announcements, and how they affect you, are summarised below.

How will the budget affect you?

INDIVIDUALS

  • Income tax, personal allowance and higher rate thresholds will be frozen for a further two years, on top of an existing four-year freeze, to April 2028.

  • National Insurance and inheritance tax thresholds will be frozen for a further two years, until April 2028.

  • The National Living Wage will be increased from £9.50 an hour for over-23s to £10.42 from April next year.

  • Benefits and state pensions will rise with inflation.

  • Reduce the dividend allowance from £2,000 to £1,000 from April 2023 and then £500 from April 2024.

  • Capital Gains Tax: reduce the annual exempt amount from £12,300 to £6,000 from April 2023 then £3,000 from April 2024.

  • The threshold for the 45p additional rate of tax will be cut from £150,000 to £125,140.

  • From 2025 electric vehicles will no longer be exempt from vehicle excise duty.

  • £900 Cost of Living Payment for households on means-tested benefits in 2023-24

  • £300 Pensioner Cost of Living Payment in 2023-24.

BUSINESSES

  • Windfall taxes will raise £14bn, including a new temporary 45% levy on electricity producers.

  • Business Rates: 75% relief for Retail, Hospitality and Leisure sectors in 2023-24, up to £110,000 cash cap.

  • Increase the van benefit charge and car fuel benefit charge in 2023-24 in line with growth in CPI.

  • Employment allowance will be retained at a higher level of £5,000.

  • Company Car Tax increase: set rates from 6 April 2025 to 5 April 2028.

  • National Insurance: maintain the secondary threshold for employer contributions at current level from April 2023 until April 2028.

  • VAT: maintain registration threshold at current level to 31 March 2026.

  • Business Rates: freezing the multiplier in 2023-24.

  • First Year Allowance for electric vehicle charge points: extend for a further two years until April 2025.

ENERGY

  • Help for energy bills will be extended from April 2023.

  • Targeted support with the cost of living for those on low incomes, disability and pensioners

  • A windfall tax on the profits of oil and gas firms will increase from 25% to 35% and be extended until March 2028.

  • New “temporary” 45% tax on companies that generate electricity will be applied from January.

  • Energy Price Guarantee - cap on the unit rate of electricity and gas. From 1 April 2023 until 31 March 2024 the typical household will pay the equivalent of £3,000 per year.

For more information on the autumn budget download our overview.

Mascolo & Styles