Autumn Budget 2022
It’s been a couple of months since the now notorious mini budget or “fiscal event” which hastened the path to the exit door for Kwasi Kwarteng and in turn Liz Truss.
The new Chancellor Jeremy Hunt has taken a somewhat different approach following the “eye-wateringly difficult decisions” that he had been warning we were faced with.
Of course, these decisions will affect us all differently depending on our own individual circumstances.
Some of the key points:
- The income tax personal allowance remains unchanged for the Basic and Higher rate brackets. These have, however, been frozen for a further 2 years meaning that more people will be pulled into paying more tax as wages increase.
- The additional rate threshold has been reduced from £150,000 to £125,140 meaning that more people will now be paying the 45% rate.
- The main national insurance thresholds also remain unchanged.
- The annual personal allowance for tax free Capital Gains will reduce from £12,300 to £6,000 in April 2023 and then reduce further to £3,000 in April 2024.
- The Dividend allowance will also reduce from £2,000 to £1,000 from April 2023.
- Some good news for those in receipt of State Pension as the triple lock remains intact and so there will be an inflation linked boost to the payments.
- With regard to energy costs, it was announced that the price guarantee will be kept for a further 12 months albeit at the cost of £3,000 per annum for the average household rather than the current £2,500.
Some of the above may have given you cause to review your own finances. It may be that you’d like to explore how to make your savings work harder for you or maybe retirement is on the horizon, and you need to review your pension arrangements.
For a free initial consultation to discuss how we may be able to help you plan your finances for the future simply click on the “Speak to Our Experts” button on this page, call us on 01244 729 074 or email firstname.lastname@example.org
Please note: This is not financial advice; it is intended to provide information of general interest about current issues.