I reckon we will be busy in the period up to 5 April 2023, as clients consider accelerating income before the 45% tax rate comes in between £125k and £150k. It will not be a huge saving but still a useful for people in that income space.
Indeed the degree of planning and opportunities for tax mitigation will depend on each individual’s position on the income spectrum .
As always real wealth, i.e. capital, will determine the extent to which one can inoculate oneself from the impact of Mr Hunt’s measures.
I feel most sorry for the family with one earner (a graduate), on pay of £50k to £60k, with 2 children and a mortgage. The bread winner is a higher rate tax payer, has abatement of child benefit and has student loan repayments. It’s an unconscionably high marginal rate of tax. It’s high time the pinch points in our tax system were addressed.
If you have any questions regarding the 2022 Autumn Statement and how the changes might affect you or your business, please get in touch.
Paul Short – Partner