What is fiscal drag? The Oxford dictionary defines it as: ‘The deflationary effects of a progressive taxation system on a country’s economy. As wages rise, a higher proportion of income is paid in tax’ The recent comments made by the Chancellor in the Autumn Statement, froze most Income Tax allowance and rates at current levels…
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Capital Gains planning
Readers may have noted that the Chancellor announced a significant reduction in the annual Capital Gains Tax allowance, currently £12,300, from April 2023. It is reducing to £6,000 from April 2023 with a further reduction to £3,000 from April 2024. Taxpayers who are contemplating the disposal of a chargeable asset next year, which…
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Uprating benefits and cost of living payments
Changes to these support payments were announced in the Autumn Statement last month. They include: State Pension – will increase in line with inflation. Cost of living payments - the government will provide households on means-tested benefits with an additional £900 Cost of Living payment in 2023-24. Pensioner households will receive an additional £300…
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National Living Wage changes from 1 April 2023
Employers will need to update their systems to reflect the changes in the National Living and Minimum Wage rates from 1 April 2023. They are: Increasing the National Living Wage for those aged 23 and over by 9.7% to £10.42 an hour; Increasing the rate for 21–22-year-olds by 10.9% to £10.18 an hour; Increasing the…
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