Autumn Statement: Private client

In his Autumn Statement 2022, the Chancellor, Jeremy Hunt announced changes to the Dividend tax allowance, the threshold for the Additional rate of income tax, the Capital Gains Tax annual exempt amount and Inheritance Tax bands and allowances.

The government will legislate for these measures, all of which first take effect from April 2023, in the Autumn Finance Bill 2022.

Income Tax rates, bands and allowances

• The Personal Allowance will remain at £12,570 until April 2028.

Dividend Allowance

From April 2023

• The Dividend Allowance will be reduced from £2,000 to £1,000.

From April 2024

• There will be a further reduction in the allowance to £500.

See Dividend rates & allowances

Capital Gains Tax Annual Exempt Amount

From April 2023

• The Capital Gains Tax Annual Exempt Amount will be reduced from £12,300 to £6,000.
• This will reduce the amount for trusts to £3,000.
• The proceeds reporting limit for CGT is fixed at £50,000 from April 2023.

From April 2024

• There will be a further permanent reduction for individuals and personal representatives to £3,000.
• The amount for trusts will correspondingly be permanently reduced to £1,500.

See CGT rates and allowances

Inheritance Tax nil-rate band and Residence nil-rate band 

The Inheritance Tax nil-rate bands are already set at current levels until April 2026 and will stay fixed at these levels for a further two years until April 2028.

• The nil-rate band will continue at £325,000. The transferable nil rate band remains unaffected.
• The residence nil-rate band will continue at £175,000.
• The residence nil-rate band taper will continue to start at £2 million.

See Inheritance Tax rates & allowances

Income Tax additional rate threshold

From 6 April 2023

• The Income Tax Additional Rate Threshold (ART) will be lowered from £150,000 to £125,140.
• The ART for non-savings and non-dividend income will apply to taxpayers in England, Wales, and Northern Ireland.
• The ART for savings and dividend income will include Scotland so will apply UK-wide.
• From April 2028 the ART will increase in line with any future increases to the Personal Allowance.

See Rates and allowances

Useful guides on this topic

Autumn Statement: At a glance
The Chancellor, Jeremy Hunt has presented his Autumn Statement 2022. This is the UK's third fiscal event this Autumn. The Autumn statement was accompanied by the Office of Budget Responsibilities' report.

External link

Autumn statement 2022