Autumn Budget Highlights
Autumn Budget Highlights
The Chancellor unveiled the Autumn Statement featuring 110 growth measures aimed at bolstering British businesses, including reductions in business taxes, and incentivizing employment. Key tax-related highlights include:
Permanent Full Expensing: The Finance (No.2) Act 2023 introduced temporary first-year allowances (FYAs) until April 2026. The Chancellor now proposes making full expensing permanent, with a consultation on potential extensions to cover plant and machinery leasing.
National Insurance Cuts: From January 6, 2024, the rate of employees’ National Insurance contributions on income between the primary threshold and upper earnings limit will decrease from 12% to 10%. Class 4 NICs for self-employed individuals will also reduce from 9% to 8% from April 6, 2024, with the abolition of Class 2 NICs.
R&D Tax Credits: A unified R&D tax credit regime will be implemented from April 1, 2024, with a rate set at the current research and development expenditure credit (RDEC) rate of 20%. Additional support for R&D-intensive loss-making SMEs will see a lowered threshold to 30% from April 1, 2024.
The Statement did not include a corporation tax rate cut, alterations to income tax thresholds, or changes to stamp duty land tax thresholds, inheritance tax abolition, or reform, but these aspects may be revisited ahead of the 2024 Budget.
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