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An Update to The Autumn Statement 2022 - Shenward

An Update to The Autumn Statement 2022

The New Chancellor’s Latest Financial Statement

Chancellor Jeremy Hunt brought the nation to a standstill as he delivered an update to the Autumn Budget, which the public hoped would bring some good news as they cope with the rising cost of living and ever-increasing inflation.

Just four weeks after Liz Truss was replaced as Prime Minister following a reversed budget announcement, is this finally a solution individuals and businesses had been hoping for? The chancellor reassured the public in his opening statement that he planned to deal with the rising living cost and hoped to rebuild the UK economy, stating “stability, growth and public services needed to be prioritised in order to achieve the best results”, which he feels has been evidenced with the changes announced.

Here we outline those changes.

Income Tax

Hunt announced various tax threshold freezes, giving some peace of mind to struggling workers.

  • Personal allowance to be fixed at £12,570
  • Higher rate threshold fixed at £50,270

Both of these have had freezes for a further two years from April 2026 to April 2028.

The additional rate threshold has also been reduced from £150,000 to £125,140 from the 6th April 2023. In a turn of events, the current dividend allowance of £2000 is to be cut to £1000 from April 2023 and then to £500 in April 2024.

The rate at which Income Tax is charged is to remain the same.

National Insurance

National Insurance is one of the areas which has been subject to multiple changes over the last 12 months. It was therefore a welcome announcement that the current NIC, Upper Earnings Limit (UEL) and Upper Profits Limit (UPL) are to be fixed until April 2028 – an additional two years. 

What’s more, from July 2022 the NIC’s Primary threshold (PT) and Lower profit Limit (LPL) will be increased to align with the personal Allowance and will be maintained at this level until April 2028. The class 2 Lower Profit Threshold (LPT) will also be fixed for the same amount of time to coincide with the LPL.

What’s sticking?

  • The primary threshold and LPL will remain at £12,570
  • The UEL and UPL will remain at £50,270.
  • Lower Earnings limited (class 1) and Small Profits Threshold (class 2) will remain at £6,396 and £6,725 respectively.
  • Class 2 rates will be £3.45pw and Class 1 Secondary NIC’s for employees will be fixed at £9,100 from April 2023 until April 2028.

National Minimum/Living Wage

To coincide with the rise in cost of living, further increases to the national minimum/living wage are to happen:

  • 23 and over will see an increase from £9.50ph to £10.42ph.
  • 21 to 22 will see an increase from £9.15ph to £10.18ph.
  • 18 to 20 will see an increase from £6.83ph to £7.49ph.
  • Under 18 will see an increase from £4.81ph to £5.28ph.
  • Apprentice rate will increase from £4.81ph to £5.28ph.

Capital Gains Tax

Capital Gains Tax is set to face a reduction too, with the exemption changing from £12,300 to £6,000 from April 2023 and then a further reduction to £3,000 from April 2024.

Inheritance Tax

No changes were made to Inheritance Tax within the autumn statement 2022. The nil-rate band will remain fixed until April 2028, while the residence nil-rate band taper will continue at £2million.

Stamp Duty

On the 23rd of September 2022, the government increased the nil-rate threshold of stamp Duty Land Tax (SDLT) from £125,000 to £250,000 for all purchasers of residential property in England and Northern Ireland and increased the nil-rate threshold paid by first-time buyers from £300,000 to £425,000. 

It was also agreed that the maximum purchase price for which First Time Buyers’ Relief can be claimed was increased from £500,000 to £625,000. 

Hunt has revealed that this will now be a temporary SDLT reduction and remain in place only until 31 March 2025.

Enveloped dwellings

The annual chargeable amounts for ATED will be uplifted by the September CPI figure of 10.1% for the 2033-2024 ATED charging period.

Corporation Tax

As previously discussed earlier on in the year within the house of commons, Hunt solidified the increase in corporation tax to 25%. However, he has advised:

  • There will be an increase from 13% to 20% of the research and Development Expenditure Credit (RDEC) on or after 1st April 2023.
  • There will be a decrease in small and medium enterprises (SME) additional deductions from 130% to 86% – also decreasing their credit rate from 14.5% to 10%.


VAT thresholds will be fixed for another 2 years, meaning VAT that is charged on top of certain products will remain the same.

Business Rates

Hunt has explained rates for businesses in England will be updated to reflect changes in the property values since the last revaluation in 2017.

He advised:

  • Multipliers will be frozen in 2023-2024 at a rate of 49.9p and 51.2p.
  • A 75% business rates discount will be applied to those in the retail, leisure and hospitality sectors in 2022-2023, up to a value of £110,000.


Finally, and most surprising, it was advised that there will be changes to tax paid on vehicles. Those with electric vehicles will begin to pay VED in the same way as those with petrol and diesel vehicles. Also, Van Benefit and Van Fuel Benefit Charges will increase in line with CPI from April 2023.

Need help understanding what this means for you and how to respond? Get in touch with a member of our friendly team at hello@shenward.com.