27 Nov 2023
The statement was expected to focus on longer term issues facing the country, but Mr Hunt decided to prioritise short-term tax cuts over maintaining future expenditure.
Some of the rumoured changes, such as inhertitance tax reform, did not appear, but the thinking here is for it to be held in reserve for greatest impact in the Spring Budget next year.
The most headline-grabbing immediate moves were cuts to national insurance and placing the expensing of corporate investment onto a permanent basis.
Some of the key announcements included:
* A cut in the main rate of class 1 employee NICs 12% to 10% taking effect from as soon as 6 January 2024. There will be a reduction in the main rate of class 4 self-employed NICs from 9% to 8% from 6 April 2024 when class 2 NICs will be abolished.
* Making permanent the full expensing of investments by companies in qualifying plant and machinery so it will continue after April 2026.
* The continued freeze of the main income tax allowances and thresholds, the main national insurance contributions thresholds and the inheritance tax nil rate bands for 2024/25.
* A full triple lock increase of 8.5% for 2024/25 for state pensions and pension credit. However universal credit and most other benefits will increase by just 6.7% in line with CPI inflation to September 2023.
* Freedom for investors to make multiple subscriptions to ISAs of the same type each year from April 2024. Partial transfers of ISAs between providers will also be permitted.
* A 9.8% increase in the national living wage to £11.44 an hour.
Here at Wealth Professional, we're here to support you in understanding the full impact of the changes on pensions and investments and help you build your tax and financial planning for the rest of this tax year and beyond.
To read our full statement, have a look at our summary flipbook: https://budget.taxbriefs.co.uk/MedicalProfessionalAutumnStatement2023/
