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What the Autumn Statement really means for your money

We take a look at what chancellor Jeremy Hunt's Autumn Statement will mean for your money, as the UK battles a cost of living crisis and faces up to a recession.

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Chancellor Jeremy Hunt considers his 2022 Autumn Statement, ahead of delivering the speech to the House of Commons - Source: HM Treasury

Chancellor Jeremy Hunt has announced a string of tax rises in his Autumn Statement.

He added that these tax rises were designed to hurt the economy as little as possible - targeting the best off, not those struggling.

“Highest-earners will contribute more because it's fair those with the broadest shoulders should help the most vulnerable,” he said.

Despite that, people in the middle and lower incomes will end up paying more in tax - as freezing the tax thresholds means every year pay rises will see more people and more people drawn into higher tax bands.

Here are the main changes to personal taxes and benefits announced:

Income tax rises

  • From April 2023 the top 45% income tax band will be applied to people making more than £125,140 - down from £150k now.

  • Other personal tax thresholds - from the tax-free allowance to the 20p and 40p tax rate -thresholds will be maintained at current levels until April 2028.

  • Inheritance tax thresholds have also been frozen

Car taxes

  • No more free ride for electric vehicles - from 2025, road tax will be introduced for EVs. 

Investing tax rises

  • Capital gains will reduce in 2023--24 from £12,300 to 6,000 and again to 3,000 in 2024-25.  

  • The tax free dividend allowance will be reduced to £1,000 in 2023-24, and then to £500 in 2024-25.  

Property taxes

  • Stamp Duty cuts will now be time-limited, ending on 31 March 2025. 

Cost of living help

  • Keeping the current energy price cap until March 31, 2023

  • New £900 cost-of-living payments to households on means-tested benefits

  • New £300 payment pensioner households

  • New £150 payment to people receiving disability benefits

  • 12-month extension to the household support fund

  • Social housing rent increases limited to 7%

Benefits and wage increases

  • National Living Wage increases 9.7% to £10.42 an hour for over 23s

  • Working age benefits and pensions credit increasing 10.1% from April

  • State pension to rise 10.1% in April

Get help with the cost of living

Prices are soaring across the UK, and wages aren't keeping up. To help people manage the cost of living crisis, here are our guides to saving on bills, dealing with debt and raising some extra cash

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