Autumn Statement 2023 Summary

On 22 November 2023, The Chancellor Jeremy Hunt delivered the Autumn Statement 2023.

Speculation

In the weeks leading up to the Autumn Statement 2023, the press was full of speculation about tax cuts. This was a surprise, just over a year after the tax cuts announced by Kwasi Kwarteng were judged imprudent by the international markets, contributing to a fall in the value of sterling and increases in interest rates. Nevertheless, it seemed that a side effect of inflation was that higher incomes and prices had fed through into higher tax receipts; the Chancellor had more in his coffers – more ‘fiscal headroom’ – than had been predicted in the Spring, and commentators were suggesting what he might do with it.

The details and what they mean for you

When the Chancellor takes a seat, the Government releases all information on the internet, including proposals he hasn’t discussed, the details of things he only briefly mentioned, and the tables of financial estimates that indicate what is significant and what is marginal. Our Statement Summary compiles the most crucial points and elucidates their impact on businesses and individuals.

Read our full Autumn Statement Summary

Significant announcements include:

• Cuts to employee NICs take effect from 6 January 2024 and self employed NICs from 6 April 2024
• 100% first year allowances (‘full expensing’) for companies made ‘permanent’ (originally due to expire 31 March 2026)
• Extension of the ‘cash basis’ of computing taxable profits for unincorporated businesses
• Reforms to tax reliefs for research and development and creative industries
• Affirmation of support for the state pension ‘triple lock’ with an 8.5% increase from April 2024, based on average earnings
• No changes announced to Income Tax, Inheritance Tax or Stamp Duty Land Tax – all remain fixed at levels previously announced
• Simplifications announced to the Making Tax Digital regime to be introduced for income tax self-assessment in April 2026

This Summary covers the key tax changes announced in the Chancellor’s speech and Autumn Statement. It includes tables of the main rates and allowances. At the back of the Summary you will find a calendar of the tax year with important deadline dates shown.

We recommend that you review your financial plans regularly as some aspects of the Statement will not be implemented until later dates.

How we can help

We will review the new proposals to ensure we offer our clients the best advice to help them remain as tax efficient as possible. And our colleagues at Carpenter Box Financial Advisers are always on hand to help manage investments and pensions.

If you would like more detailed one-to-one advice on any of the issues raised in the Budget, please get in touch or give us a call on 01903 234094.