• Mel O'Donnell

Spring Statement 2022


 

Introduction


Against a backdrop of rising inflation, Chancellor Rishi Sunak presented his first Spring Statement on Wednesday 23 March 2022.


In his Spring Statement, the Chancellor announced a cut in fuel duty for petrol and diesel as he sought to ease the impact of rising prices for households and businesses.


The Chancellor will lift the starting thresholds for National Insurance contributions (NICs). He also pledged a cut to income tax in 2024. However, the Health and Social Care Levy will still be implemented in April 2022.


For businesses, there is an increase to the Employment Allowance, as well as relief from business rates on a range of green technologies and help with training and the adoption of digital technology.


You should contact us before taking any action as a result of the contents of this summary.

 

Highlights


Increase in the National Insurance threshold and Lower Profit Limit

Temporary increase in National Insurance Rates

Income tax reduction

Fuel duty

Increased Employment Allowance

VAT on energy saving materials

Green reliefs for business rates


 

Personal Tax


The UK personal allowance, tax rates and bands for the tax year 2022/23 were announced by the Chancellor in the October 2021 Budget.

The personal allowance

The marriage allowance

Tax bands and rates

Tax on savings income

Tax on dividends


 

Business Tax

Making Tax Digital for Business: VAT

MTD for Corporation Tax (CT)

Corporation Tax rates

Capital allowances

Preventing abuse of the R&D tax releif

Cultural releif

The Residential Property Developer Tax


 

Employment Taxes

Employer provided cars

Employer provided fuel benefit

Employer provided vans and fuel

National Insurance contributions

National Living Wages (NLW) and National Minimum Wage (NMW)


 

Capital Taxes

Capital gains tax (CGT) rates


CGT annual exemption

The CGT annual exemption is £12,300 for 2022/23 and will remain frozen until April 2026.

CGT reporting


Inheritance tax (IHT) nil rate bands

The nil rate band has remained at £325,000 since April 2009 and is set to remain frozen at this amount until April 2026.

IHT residence nil rate band

Charitable giving


 

Other Matters


VAT rates and limits

Vehicle Excise Duty (VED)

Landfill Tax


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