Autumn Statement 22 November 2023

Main rate of Class 1 NICs to be cut from 12% to 10% from 6 January 2024.

Class 2 NICs no longer compulsory to pay from April 2024. For entitlement to state benefits etc, voluntary payments can still be made if profits are less than £6,725.

Class 4 NICs rate will be cut from 9% to 8% from April 2024.

No changes to threshold level or rate of Employer NICs.

No changes to the Pension contribution Annual Allowance, remains at £60,000 per tax year.

Personal Income Tax and National Insurance contributions thresholds, remain fixed at their current rates until April 2028.

National Living Wage to increase from £10.42 an hour for age 21 and over to £11.44 from 1 April 2024.

NMW rates to apply from April 2024:

• 18 to 20 year olds from £7.49 to £8.60 per hour
• 16 to 17 year olds from £5.28 to £6.40 per hour

No changes to the previously notified Dividend Allowance that is to be reduced to £500 from April 2024.

No changes to the previously notified Capital Gains Tax Annual Exempt Amount that is to be reduced to £3,000 from April 2024.

No change to Corporation Tax rates from 1 April 2024:

• 19% for taxable profits below £50,000 (small profits rate)
• 25% for taxable profits above £250,000 (main rate) Marginal Relief available to be tapered between the small profits rate and the main rate.

100% Capital Allowance first year tax relief (in addition to current AIA allowances) for Limited Companies only, now made permanent.

Special rate expenditure first year allowances of 50% for Limited Companies only, also made permanent.

No changes to IHT thresholds or rates.

No changes to ISA limits or taxation of savings.

Van and Fuel benefit amounts to remain fixed at 2023/24 rates for 2024/25.