In light of the recent government autumn statement, we would like to bring to your attention the key updates that may impact your financial planning. The government has responded to the prevailing economic challenges, and the Chancellor has outlined three primary priorities: stability, growth, and public services. To support these priorities, a series of fiscal measures have been proposed. Here is a summary of the key points:
- Income tax rates will remain the same for 2024/25 and income tax personal allowance and basic rate limit will remain fixed at £12,570 and £37,700, respectively until 2028.
- The Chancellor has confirmed that the capital gains tax (CGT) annual exempt amount will be reduced from £6,000 to £3,000 from 6 April 2024 for individuals.
- Dividend tax rates will remain the same however the government will reduce the Dividend Allowance from £1,000 – £500 from 6 April 2024.
- Major changes to National Insurance Contributions (NICs) as the government will cut the rate of Class 1 NICs from 12% to 10% from 6 January 2024.
- Class 2 self-employed NICs will be abolished from 6 April 2024. Self-employed individuals will retain access to the contributory benefits, contingent upon their profit levels.
For a detailed overview of these changes, please refer to our summary HERE. If you have any questions or require further clarification, feel free to contact us.