The Chancellor announced that the reductions on stamp duty land tax (STLT) for properties purchased in 2025 will be reversed. This means that the nil rate threshold will be increased from £125,000 to £250,000. This announcement impacts new property owners who purchased these properties in England and Northern Ireland.
When it comes to first-time buyers, the nil rate threshold was also increased to £425,000 from £300,000. Additionally, reliefs for first-time home buyers were also reduced from £625,000 to £500,000. The Chancellor mentioned that the reductions in reliefs are only temporary. And once the UK economy begins showing signs of recovery, the Chancellor said that it would then be their priority to incentivise the housing market once again.
The Autumn Statement revealed that HMRC’s newly large allocated budget would be used to issue campaigns of tax investigations against fraud and non-compliant high-net-worth individuals. One of the UK government’s and HMRC’s most pressing priorities at the moment would definitely be reducing tax evasion and tax fraud nationwide. This additional funding for the tax office is estimated to yield about £725m in additional taxes!
Just like petrol and diesel vehicles that pay road tax, the same would be applicable for electric vehicles starting from April 2025. This announcement in the Autumn Statement was to ensure that all vehicle owners on the road will be paying a fair tax contribution. Additionally, car-related taxes will also be addressed for Company Cars to ensure that there’s a long-term certainty for taxpayers from now until April 2028.
Following the theme of restrictions in this 2022 Autumn Statement, it was announced that R&D relief for SMEs will also be restricted by increasing the tax credits. This increase in tax credits will eventually reach £20bn by 2024-25!
Until 2028, the Chancellor announced in the Autumn Statement that the National Insurance Threshold will be frozen. This means that the National Insurance secondary threshold will continue to be £9,100 up until April 2028. Interestingly, the government confirmed that around 40% of businesses will not be affected by this announcement because they will be able to offset this by utilising the £5,000 employee allowance.
What we mentioned in this article includes key changes. But there’s so much more to the Autumn Statement. You can review the following links from the government’s website and news website.
The Autumn Statement Documents
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