These latest fiscal measures follow on from the announced by the Chancellor on 17 October 2022 which, in a bid to reassure nervous markets, reversed most of the former Chancellor Kwasi Kwarteng’s delivered on 23 September 2022.
Perhaps in a bid to avoid any further shocks to the markets, many of the announcements in today’s Autumn Statement had been pre-trailed and so there were few real surprises for Private Client practitioners. The most unexpected announcement was probably the reduction in the Capital Gains Tax Annual Exempt Amount from £12,300 to £6,000 from April 2023 and to £3,000 from April 2024.
Another notable announcement is the reduction in the income tax additional rate threshold from £150,000 to £125,140, which marks a further change of direction for the government since the Growth Plan, when the 45% additional rate was scrapped altogether, only to be quickly reinstated on 3 October ahead even of the emergency measures announced on 17 October 2022.
Today’s statement has also given us a clearer idea of the government’s legislative plans, with it being announced that there will be an Autumn Finance Bill 2022 and a Spring Finance Bill 2023. Reference was also made to Spring Budget 2023. This is likely to be viewed as a disappointing development by those who had been hoping for a return to a single annual Budget presented in the Autumn, followed by a single Finance Bill.
For the key business tax announcements, see News Analysis: .
Download our analysis here: Autumn Statement 2022—Private Client analysis
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