Updated: Dec 8, 2022
A quick overview of the changes to personal taxes in todays announcement.
No change to income tax or NIC thresholds - More people will be dragged into hightax bands therefore paying more tax.
Threshold for 45% tax rate reduced from £150,000 to £125,140 - Same here more will now pay the higher tax.
CGT allowance to be reduced from £12,300 to £6,000 in 2023/24 and £3,000 in 2024/25 - This is a big one far more will be collected by HMRC in CGT over the next 2 years and beyond, the allowance is now just one step away from being abolished all together.
Dividend allowance to be reduced from £2,000 to £1,000 in 2023/24 and £500 in 2024/25 - More taxes will be collected from your investments!
Electric Vehicles to be taxed as a benefit from 2025 - Quite envitable you could say as electric car sales increase revenue for this duty is decreasing.
State Pension to increase by 10.1% - Good news if you’re a pensioner.
In all it means we will all be paying considerably more in taxes.
Watch out for our full analysis being released tomorrow.