The chancellor spoke at 12.30 to outline the tax & financial plans for the next year. The following changes in tax were mentioned in the speech.
More details will be published in further blogs going forward.
Income Tax for individuals
- The Pensions Lifetime Allowance will be maintained at its current level of £1,073,100
- Capital Gains tax rates have not been altered
- Personal Allowances will increase to £12,570 for 2021/22, and will remain at this level until April 2026 (2025/26)
- Higher rate threshold will increase to 50,270 for 2021/22, and will remain at this level until April 2026 (2025/26)
- The Capital Gains Annual Allowance will remain at £12,300 per individual, and rates currently in force have not been changed.
- The Inheritance Tax Nil Rate Band will remain at £325,000 per person, plus any Nil Rate Band entitlement. No changes have been made to gifting or annual exemption rules.
Corporate Tax changes
Corporation Tax increased to 25% from April 2023. Profits of up to £50,000 will not be affected and there will be a marginal.
Loss carry back claims can now be extended to 3 years
New investment qualifies for 130% super deduction from profits
8 Freeports will be created with special tax regimes.
New HMRC task force with 1,000 people to counter evasion