The Autumn 2023 Budget
22/11/2023
The Autumn 2023 Budget
The Chancellor, Jeremy Hunt has unveiled the government's tax and spending plans in the House of Commons today.
NATIONAL INSURANCE
Mr Hunt has confirmed that the main employee National Insurance will be cut by 2% from 12% to 10% from 6th January 2024. This will help 27 million people who are on the average salary of £35,400; they will save over £450 a year.
It is currently charged at 12% on earnings between £12,571 and £50,271 - and 2% on all employed earnings above that.
The government is also cutting taxes for the self-employed from 6th April 2024. Mr Hunt confirmed that the government is reducing the main rate of Class 4 self-employed NICs from 9% to 8%, and will abolish the outdated and needlessly complex Class 2 self-employed NICs, reforming and simplifying the tax system.
PENSIONS
The state pension will increase by 8.5% from April 2024 to £221.20 a week, as the government honours the triple lock.
There are no further updates on Annual or Lifetime allowance changes from the Spring budget announcement.
INDIVIDUAL SAVING ACCOUNTS (ISAs)
From April 2024, you may now have multiple ISAs contributed into the in the same financial year, removing the previous restriction where you couldn't have two different Stocks and Shares ISAs contributed to in the same financial year.
The limits of £20,000 for an ISA and £9,000 for a Junior ISA still remain the same.
ENTERPRISE INVESMENT SCHEME (EIS) & VENTURE CAPITAL TRUST (VCT) EXTENSION
The sunset clauses for the EIS and VCT will be extended from 6 April 2025 to 6 April 2035.
SOCIAL BONUS
Hunt also said that he would freeze duty on alcohol, a move no doubt applauded by the industry and consumers. Overall this is a positive budget for those trying to save efficiently; however as ever, if you want to find out more about any of these or any other policy changes, and how they’d specifically relate to your circumstances, please get in touch with your adviser.
Overall this is a positive budget for those trying to save efficiently; however as ever, if you want to find out more about any of these or any other policy changes, and how they’d specifically relate to your circumstances, please get in touch with your adviser.
