Summary of tax highlights

BRIEF HIGHLIGHTS:

• Income Tax and National Insurance contributions thresholds will be fixed at their current rates until April 2028. 
• The April 2022 1.25% rise in National Insurance was reversed from 6 November 2022.
•  The National Living Wage will be increased from £9.50 an hour for over-23s to £10.42 from April 2023. 
• The National Insurance contributions secondary threshold (Employers NI) will be fixed at  £9,100 from April 2023 until April 2028. Those applicable for the Employment Allowance should remain unaffected by the freeze.
• Employment Allowance of £5,000 to remain in place for 2023/24.
• The Income Tax additional rate threshold (ART) will be lowered from £150,000 to £125,140 from 6‌‌‌ ‌‌April 2023. The ART for non-savings and non-dividend income will apply to taxpayers in England, Wales, and Northern Ireland. 
• The Dividend Allowance will be reduced from £2,000 to £1,000 from April 2023, and to £500 from April 2024.  Planned reduction in Dividend Tax rates by 1.25% points cancelled.  Additional 1.25% points to remain in place from April 2022 onwards.
• The level at which house-buyers begin to pay stamp duty in England and Northern Ireland is doubled from £125,000 to £250,000.  First-time buyers will pay no stamp duty on homes worth £450,000, up from £300,000.  The maximum purchase price for which First Time Buyers’ Relief can be claimed was increased from £500,000 to £625,000 with effect from 23 September 2022 until 31 March 2025.
• The Capital Gains Tax Annual Exempt Amount will reduce from £12,300 to £6,000 from April 2023 and to £3,000 from April 2024.  
• The Inheritance Tax (IHT) nil-rate band and residence nil-rate bands will be fixed at their current rates until April 2028.
• As previously confirmed, the planned increase in the Corporation Tax rate to 25% for companies with over £250,000 in profits will go ahead. The Corporation Tax rise in April 2023 should only affect the most profitable companies (profits over £50,000 tapered) because of the Small Profits Rate.
• The VAT registration and deregistration thresholds will be maintained at the current levels for an additional two years from 1‌‌‌ ‌‌April 2024. 
•  First Year Allowance for electric vehicle chargepoints – the government will extend the 100% First Year Allowance for electric vehicle chargepoints to 31‌‌‌ ‌‌March 2025 for Corporation Tax and 5‌‌‌ ‌‌April 2025 for Income Tax.
• From April 2025, electric cars, vans and motorcycles will begin to pay VED in the same way as petrol and diesel vehicles.