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Autumn Statement - November 2023

Please see our Autumn Statement summary

Please see our Autumn Statement summary

This month's newsletter covers the Autumn Budget Statement by the Chancellor delivered on the 22nd November including the key takeaway points:

  • National Insurance (NI) relief for the self-employed and an NI cut for employees.
  • National minimum wage (NMW) rates increased from April 2024 as the Government aims to eliminate low pay. This change is expected to increase earnings for around 2 million workers.
  • Business rates - The government will introduce a business rates support package worth £4.3bn over the next five years to support small businesses and Retail, Hospitality and Leisure (RHL).
    • This includes extending the 75% relief for RHL for 2024-25, up to a cash cap of £110,000, and freezing the small business multiplier for a fourth consecutive year. The standard rate multiplier will be increased in line with CPI inflation.
  • Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) - The EIS and VCT reliefs were due to expire after 5 April 2025; new legislation will be introduced to extend the lifetime of these reliefs to 2035.
  • Annual Tax on Enveloped Dwellings (ATED) - ATED annual charges will be increased by 6.7% from 1 April 2024 in line with the September 2023 Consumer Price Index.
  • Reforming R&D Tax Reliefs: The Government has said that it will merge the existing Research and Development Expenditure (RDEC) and SME schemes, with expenditure incurred in accounting periods beginning on or after 1 April 2024 to be claimed in the merged scheme.
  • The Annual Investment Allowance (AIA) is now permanently set at £1million. This means that businesses can claim tax relief at 100% on up to £1million of expenditure on qualifying plant and machinery (e.g. capital equipment).
    • Full expensing will be made permanent, enabling investments made by companies in qualifying plant and machinery, after 1 April 2026, to continue to qualify for a 100% first-year allowance for main rate assets, and a 50% first-year allowance for special rate (including long life) assets. It must be noted that it will usually only benefit companies or groups of companies that have already utilised their £1million AIA