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• The Autumn Finance Bill 2022 was published today (22 November 2022), legislating for key tax changes announced at the Autumn Statement last week, including raising and extending the Energy Profits Levy and lowering the additional rate threshold to 125,140.
• The Bill serves as a down payment on the governments commitment to stabilise the economy through fair policies, where those with the broadest shoulders bear the most burden
• The main Spring Finance Bill 2023 will follow the spring Budget in the usual way, for remaining tax measures needed ahead of April 2023.

Measures in the Bill will see those with the broadest shoulders carry the heaviest burden as the government drives down inflation and restores economic stability following the impact of the pandemic and Putins invasion of Ukraine. Measures include:

• The Energy Profits Levy (EPL) is being extended to help fund cost of living support and ensure oil and gas companies pay their fair share of tax. The rate of tax applied to the profits of oil and gas companies is increasing from 25% to 35% and the sunset clause changing to March 2028 rather than December 2025. This measure also reduces the investment allowance from 80% to 29%, except for investment expenditure on upstream decarbonisation, where it will remain at 80%. This broadly maintains the existing cash value of total tax relief for non-decarbonisation investments.
• The threshold for the additional rate of income tax will be lowered from 150,000 to 125,140, making sure making sure those on the highest incomes contribute the most to strong public finances.
• The Dividend Allowance will be reduced from 2,000 to 1,000 from April 2023 and to 500 from April 2024, and the Capital Gains Tax (CGT) annual exempt amount will be reduced from 12,300 to 6,000 in April 2023, and 3,000 in April 2024. These changes make the tax system fairer by bringing the treatment of unearned income closer in line with that of income earnt by employees.
• Making sure all motorists pay a fairer tax contribution by introducing Vehicle Excise Duty (VED) for Electric Vehicles (EVs) from April 2025. This aligns their taxation with that of petrol and diesel vehicles, reflecting their permanent role in the net-zero economy of the future. Alongside this, the government will provide certainty on favourable Company Car Tax rates for electric cars until 2028.
• To ensure the tax system supports strong public finances, income tax thresholds will remain fixed at their current levels until 2028, an extension of two years.
• To help support the public finances in a way that is fair, the current thresholds for inheritance tax will also remain in place until 2028, an extension of two years.
• Research and development (R&D) tax reliefs will be reformed to make sure taxpayers money is spent as effectively as possible, including through reducing error and fraud. From 1 April 2023 the Research and Development Expenditure Credit (RDEC) rate will be increased to 20% from 13%, the SME deduction rate will be reduced to 86% from 130%, and the Small and Medium Enterprise credit rate decreased to 10% from 14.5%.

The main Spring Finance Bill 2023 will follow the spring Budget in the usual way, for remaining tax measures needed ahead of April 2023.

The Autumn Finance Bill 2022 had its first reading today (Tuesday, 22 November) and will follow the normal legislative path through Parliament.

Further information

• Read the full contents of the Autumn Statement 2022
• The below table details the full list of measures contained in the Autumn Finance Bill 2022

Clause	Measure	Implementation date
Clause 1	Energy Profits Levy (EPL) Increase in rate of tax	Has effect for accounting periods beginning on or after 1 January 2023
Clause 2	EPL Reducing the amount of the additional investment expenditure	Has effect in relation to expenditure incurred on or after 1 January 2023
Clause 3	EPL Extending the period for which tax has effect	Extending the period for which the levy has effect to 31 March 2028 (previously 31 December 2025)
Clause 4	R&D Tax Reliefs Amount of relief for expenditure on research and development	Changes apply to expenditure incurred on or after 1 April 2023
Clause 5	Income Tax Thresholds Basic rate limit and personal allowance tax years 2026-27 and 2027-28	Sets amount of the personal allowance for the 2026-27 and 2027-28 tax years
Clause 6	Income Tax Additional Threshold at which additional rate is charged	Will apply from the 2023-24 tax year onwards
Clause 7	Dividend Allowance - Dividend nil rate	Rate will reduce from 2000 to 1000 for tax year 2023-24, and then reduce from 1000 to 500 for tax year 2024-25 and subsequent years
Clause 8	Capital Gains Tax (CGT) Annual Exempt Amount (AEA)	In tax year 2023-24 the AEA will be 6000 for individuals, personal representatives and 3000 for most trustees of settlements (trusts). In tax years on and after 2024-25 it will be 3000 for individuals and personal representatives and 1500 for trusts.
Clause 9	Inheritance Tax Rate bands etc for tax years 2026-27 and 2027-28	Thresholds will be fixed at their current levels for a further two tax years, 2026-27 and 2027-28.
Clause 10	Vehicle Excise Duty (VED) Removal of VED exemption for electrically propelled vehicles etc	Will take effect on or after 1 April 2025
Clause 11	VED Taxable benefits: appropriate percentage for cars with a CO2 emissions figure	Will apply to tax years 2025-26, 2026-27  View the original news story Related Articles Scroll Back To Top 📄More Articles Autumn Finance Bill published to cut tax and back businessWednesday, 29 Nov Policy paper: Spring Finance Bill 2023: Public Bill CommitteeWednesday, 10 May Policy paper: Spring Finance Bill 2023: Public Bill CommitteeWednesday, 10 May Policy paper: Spring Finance Bill 2023: Public Bill CommitteeMonday, 15 May Press release: UKEF CEO response to the Autumn Statement 2023Tuesday, 28 Nov Comments Scroll Back To Top ✎Write Comment We don't have any comments for this article yet. Why not join in and start a discussion. Write a Comment Scroll Back To Top Your name: Your email: Comments: Post my comment  Sponsored Advert   Ministerial Departmental News   PM's Office, 10 Downing Street   Cabinet Office   Department for Business, Innovation and Skills   Department for Communities and Local Government   Department for Culture, Media and Sport   Department for Education   Department for Environment, Food and Rural Affairs   Department for International Development   Department for Transport   Department for Work and Pensions   Department of Energy and Climate Change   Department of Health   Foreign and Commonwealth Office   HM Treasury   Home Office   Ministry of Defence   Ministry of Justice   Northern Ireland Office   Scotland Office   Wales Office   See all departments News Calendar Recent Comments  Sponsored Advert   Follow Us on Twitter Tweets by @gov_wire  Latest Government News Guidance: River Thames: current river conditions Transparency data: Small boat activity in the English Channel Press release: 10,000 UK Armed Forces personnel deployed overseas to keep us safe this Christmas Guidance: The white book for foreign service advisers and defence attachés Guidance: River Thames: current river conditions Transparency data: Small boat activity in the English Channel Bird flu (avian influenza): latest situation in England The Lockerbie bombing Guidance: Critical 5 Statement on Security and Resilience Consultation outcome: Alcohol licensing: age verification    Business Climate Crime Defence Economy Environment Housing Immigration NHS Overseas Schools Tax Transport Work ALL ❯ © 2024 Copyright CliqTo Media Ltd. Registered in England, company number 7575287. Privacy Policy | Terms & Conditions | Copyright Notice Contains public sector information licensed under the Open Government Licence v3.0. Share This Enjoyed this? Why not share it with others if you've found it useful by using one of the tools below: