Tom Evennett, EY UK&I Family Enterprise Leader, comments:
“Warned that there would be significant additional taxes payable following this Autumn Statement, many individuals will be breathing a sigh of relief that, other than those earning more than £125,140 (which from April 2023 is the point at which the additional 45% rate becomes payable by individuals - costing someone earning £150,000 an additional £1,243 of income tax), there were no increases to the rates of income tax, capital gains tax or inheritance taxes.
“However, the Chancellor’s announcement to freeze the thresholds for income taxes and inheritance taxes to the end of 2027/28, and reduce the reliefs of the dividend allowance and capital gains tax annual exempt amounts by 75% over the next couple of years, will give a significant boost to the Treasury’s coffers.
National Insurance freeze
“The other key personal tax announcement, that is forecast to raise one of the largest amount for the Treasury and could have an indirect impact upon individual's wages, is the decision to hold the secondary threshold for employer national insurance contributions at the current level of £9,100 for the next five years. As a result, the cost of employing people will rise as salaries increase but the threshold remains frozen for employer's national insurance contributions – this is expected to bring in an extra c.£25bn to the Exchequer over the next five years to 2027/8.”