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HOW WILL THE AUTUMN STATEMENT AFFECT ME?

Most of us heard the Autumn Statement that was delivered yesterday (17th November 2022) But what does this mean for the Mortgage Market? How will it affect us? Take a read of the below to find out how it will affect the mortgage market and us as individuals in general.

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Income Tax

The tax free personal allowance remains at £12,570 and the higher rate tax threshold is £50,270. These thresholds have been frozen until 2028. The 45% additional rate tax threshold will be lowered from £150,000 to £125,140 from 6 April 2023.

National Insurance (NI)

The NI earnings thresholds have been frozen until April 2028, but the 1.25% additional Social Care Levy that was scrapped in September has not been reinstated.

Inheritance Tax

The Inheritance Tax Nil Rate Band and additional Residence Nil Rate Band will be frozen at £325,000 and £175,000 respectively for a further two years until April 2028.

Pension allowances

There has been no significant change to pensions; the headline Annual Allowance remains at £40,000 and the Lifetime Allowance remains frozen at £1,073,100 until April 2026.

State Pension

The Pensions Triple Lock has been protected and the State Pension will go up by £870 from April 2023, an increase of 10.1% in line with inflation. The government is also reviewing the State Pension age and will publish their review in early 2023.

HOW WILL THE AUTUMN STATEMENT AFFECT ME?

Dividend Tax allowance

This is being reduced from £2,000 per year to £1,000 per year from April 2023 and to £500 per year from April 2024.

Capital Gains Tax

The annual Capital Gains Tax exemption will reduce from £12,300 to £6,000 from April 2023 and then to £3,000 from April 2024.

Stamp Duty Land Tax

Stamp Duty changes announced in the previous Budget will remain until March 2025. In England and Northern Ireland the Stamp Duty threshold is £250,000 and the first time buyer threshold is £425,000 on properties under £625,000.

Tax on electric vehicles

From April 2025 electric vehicles will no longer be exempt from Vehicle Excise Duty and Company Car Tax rates will increase, although they will remain lower than tax rates on traditional combustion engine cars.

How will the Autumn Statement Affect Businesses?

Windfall Tax

Windfall Tax on the profits of oil and gas firms will increase from 25% to 35% until March 2028. There will be a new temporary 45% levy on electricity generators from January 2023 until March 2028. The Chancellor expects this to raise an extra £14 billion.

Business Rates

Properties will be revalued for business rates from April 2023, but there will be significant government support for firms including a new relief scheme. The government says that two thirds of properties will not pay any more in business rates.

autumn statement
autumn statement

VAT threshold

The VAT registration threshold will be maintained at £85,000 for a further two year period from April 2024 and the headline rate of VAT remains at 20%.

Living Wage increase

The National Living Wage will rise from £9.50 per hour for over 23’s to £10.42 from April 2023, an increase of 9.7%.

National Insurance (NI)

The National Insurance employment allowance of up to £5,000 is frozen until April 2028.

Energy Price Guarantee

While this has been extended for households for a further 12 months from April 2023 (albeit at a less generous level), there has been no further support announced for businesses. The current relief ends in March 2023.

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Stephen Kerrigan, Mortgage Advisor
HOW WILL THE AUTUMN STATEMENT AFFECT ME?

At MortgagesRM, we are experts at sourcing the very best remortgage deals for our clients. We charge no fees to the people who come to us for mortgage advice, we take a fixed fee from the bank. This means that our only motivation is to find you the very best deal out there – get in touch today and let us help you save money today.

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