Thread by @HelenT_tax

Apparently this is going to be a boring #Budget2023, so in preparation for Wednesday, I'm revising all the things we already know and are not expecting to change, starting with Income tax:

Following November's Autumn statement, income tax rates for 2023/24 are expected to be the same for 2022/23
- So £12,570 personal allowance
- £50,270 higher rate threshold (exc. Scotland)

So it won't be a 'headline' as it's not new, but we'll have yet another year of 'fiscal drag' where it looks like nothing is changing, but more tax is collected as allowances ought to be going up with inflation but are not #Budget2023 3/n

The only actual change will be for those paying top 45% - which will kick in at £125,140 from 6 April 2023 instead of £150,000. (NB For Scottish taxpayers, this only applies to savings/dividends) 4/n

And of course a change for those getting dividends, as the dividend allowance is expected to drop from £2,000 to £1,000 from 6 April 2023. This is scheduled to drop further next year and will bring more people into self-assessment for not a lot more tax 5/n

Capital Gains Tax (CGT) - another drop here, we are expecting annual exemption to halve from £12,300 to £6,000 - so again, more people into tax for smaller gains. Will affect those in crypto (if they make any gains) 6/n

Should be good news for divorcing couples though - we are expecting new rules announced last year to come through formally into a Finance Bill to make it fairer and easier to exchange assets without CGT consequences. This will be really welcome when it comes. 7/n

Not tax, but National Living Wage - due to go up from 1 April 2023 to £10.42/hour (for those over 23) 8/n #Budget2023

#Inheritancetax - another frozen threshold. Starting to head into permafrost here as headline nil rate band of £325,000 unchanged since 2009. 9/n #Budget2023

#VAT - absolutely not my area, but another frozen threshold where we are not expecting changes at #Budget2023 - according to Hunt's last statement in Nov 22, the VAT threshold of £85,000 will stay for another two years beyond 1 April 2024! 10/n

Which brings me to #CorporationTax - we are expecting the main rate to go up from 19% to 25%. Hunt is getting pressure to do something to soften this blow though, so we might see something on capital allowances (argh, back into speculation, which I was trying to avoid!) 11/n

If Corp tax does go up as planned, then it's worth remembering small companies with profits under £50,000 will be cushioned from the increase as rates will remain at 19% for first £50k. #Budget2023 12/n

However, owners taking dividends out will feel effects of frozen income tax thresholds and lower dividends allowance. #Budget2023 13/n

I hope that goes to show there's a surprisingly large amount of #Budget2023 which is already announced, although there's always room for surprises. 14/14