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Dividend Tax
The tax-free dividend allowance is currently £2,000. From April 2023-2024, this will reduce to £1,000 and to £500 from 2024-2025.
Capital Gains Tax
The Government are reducing the tax-free allowance on Capital Gains Tax from April 2023. The threshold will reduce from £12,300 to £6k and then to £3k in 2024.
Stamp Duty Land Tax (SDLT)
The SDLT changes announced in the mini-budget are now only guaranteed until 31 March 2025.
In September, the previous Chancellor, Kwasi Kwarteng confirmed that the 0% threshold would increase from £125k to £250k, giving purchasers a max saving of £2.5k on their stamp duty bill.
Energy Prices
The average household bill for gas and electric will increase from £2.5k to £3k. This freeze will run until April 2024. Ofgem have said that without Government intervention, average bills would cost as much as £4k!
Income Tax
The Chancellor made no changes to basic and higher income tax thresholds.
The 45% income tax threshold will change though, from £150k down to £125,140, meaning an estimated 250,000 additional taxpayers will now start paying 45% on income at and above £125k.
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And the rest:
- Rent increases for social housing capped at 7% for the next year, saving the average tenant £200.
- The national living wage is up (age 23+) from £9.50 to £10.42 per hour.
- Pensions to increase in line with September’s inflation rate, 10.1%, from April 2023. Hunt will retain the “triple lock” pension guarantee, which ensures state pensions increase in line with inflation, average earnings or 2.5% (whichever is highest) annually.
- Means-tested benefits, including Universal Credit, will also increase by 10.1%.
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Until next week, be good, be smart, be profitable.
Charlotte x
This week's actionable tip: If you don't have a tax advisor, find one, book a free 30-min consultation and see how much you could save your property business in tax.
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