The UK Chancellor, Jeremy Hunt, this morning delivered his much-anticipated Autumn Statement.
He promised a “balanced plan for stability” and asked, “those with more to contribute more”. He started by setting out the changes to personal taxes. There were no surprises here as these had been trialled in the media over the last week. The headline announcements are:
- The threshold at which people will pay 45% tax will fall from £150,000 to £125,140
- The income tax personal allowance, National Insurance thresholds and Inheritance Tax threshold will be maintained for a further two years from 2026 to April 2028
- The dividend tax-free allowance will be reduced from £2,000 to £1,000 and then to £500 in April 2024
- The capital gains tax annual exempt amount will be reduced from £12,000 to £6,000 and then to £3,000 in April 2024
For Americans living in the UK, the UK will continue to drive their overall tax exposure. We will update you as more detail becomes available.
If you would like to discuss your US and UK tax position, including how the changes today might impact your situation, please contact us.