The Chancellor told us that the government's approach to delivering fiscal sustainability is underpinned by fairness. Those on the highest incomes and making the highest profits will pay a larger share.
The Autumn Statement reduced the income tax additional rate threshold from £150,000 to £125,140, which increases taxes for those on high incomes.
Income tax, national insurance and inheritance tax thresholds will be frozen at their current levels for a further two years, to April 2028. The government are also reducing the annual Capital Gains Tax Allowance to less than half what it was for the 22/23 tax year and the annual tax free Dividend Allowance over the next two tax years. By 2024, it will be now be worth just a tenth of the value it was when first introduced back in April 2016.
The chancellor stated that businesses also need to pay their fair share. The National Insurance Secondary Threshold will now be fixed at £9,100 until April 2028.
He also set out to ensure that businesses in the energy sector, who have been enjoying higher than usual profits as global energy prices have soared also pay more in tax. The Energy Profits Levy is to be increased by 10% percent to 35%, extended to the end of March 2028.
The Chancellor commented that his Autumn Statement balances revenue raising and spending restraint, whilst protecting vital public services. He said the Autumn Statement confirms that total departmental spending will grow in real terms at 3.7% a year on average over the current Spending Review period.
What does the Autumn Statement 2022 mean for you?
Everything you need to know about the chancellor's tax increases and spending cuts.
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