Autumn Statement – 22 November Highlights

22nd November 2023

The Chancellor, Jeremy Hunt, delivered his Autumn Statement this afternoon, promising 110 measures to promote growth.

The tax changes include:

  • National Insurance – Employees
    • Class 1 main employee rate to be reduced by 2% to 10% from 6 January 2024
  • National Insurance – Self-employed:
    • Class 2 National Insurance to be abolished. Entitlements, including to State Pension, will be maintained
    • Class 4 National Insurance to be reduced by 1% to 8%
  • Capital Allowances: full expensing relief to be made permanent
  • Minimum Wage: the National Living Wage will increase to £11.44 per hour, from April 2024. The main rate will apply to everyone 21 and over, rather than 23 and over.
  • Alcohol Duty: frozen until 1 August 2024
  • State Pension: increase by 8.5% from April 2024, implementing the triple lock in full
  • R&D Tax Relief:
    • the existing R&D Expenditure Credit and SME Schemes to be combined
    • tax rate within merged R&D scheme for loss-making entities to be reduced from 25% to 19%, and the threshold for the additional support for R&D intensive loss-making SMEs to be reduced to 30%
  • Tax relief for visual effects expenditure: to be introduced from April 2025
  • Business Rates:
    • the 75% business rates relief for retail, hospitality and leisure will be extended until 2025
    • small business multiplier to be frozen until 2025

Further details will follow in our full summary.  Please contact Katharine Arthur or Mark Pattenden if you have any queries.

Katharine Arthur

Partner, Head of Private Client
+44 20 7969 5610
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