The chancellor delivered his autumn statement a few highlights of which are below;
State pension will increase by 8.5% from April 2024 to £221.20 a week.
Lifetime Allowance has been confirmed it will be abolished as of April 2024.
‘Pension for life’ in essence the Government want employees to have their own workplace pension and employers can pay into it, soshould they move jobs then they can keep the same pension and the employer will put any pension contributions into that existing employees pension. Giving employees an element of freedom and control.
Employee NI will reduce to 10% from 12%, the self employed will see class 2 contributions abolished and class 4 will reduce from 9% to 8%.
No change in rates here.
Despite the rumours about changes here, nothing was mentioned. This doesnt mean to say nothing will be announced in the budget in 2024.
Capital Gains Tax
The allowance will reduce from £6,000 to £3,000 in april 2024.
Dividend Tax Allowance
Reducing from £1000 to £500 from April 2024.
Although ISA allowances will remain at £20,000 for adults and £9,000 for children, there have been various changes to the admin and rules of ISAs’
- You can now subscribe to multiple ISA’s of the same type in any year, you are not restricted to one.
- You can transfer part of an ISA in a year and you dont have to transfer the lot.
- Fractional Shares are now permitted within an ISA.
Arthur Browns Wealth Management’s View
The Autumn Statement 2023 focuses on incentivising work, supporting businesses, and investing in growth industries. We welcome the clarity on the lifetime allowance abolition and the investment in innovative sectors. However, we also note the ‘stealth tax’ of frozen allowances for personal allowance, Income Tax bands, and IHT allowances.
if you want to know more about how we can help, speak to a member of our team today.