What to expect in tax in 2023: private client perspective

Personal taxes: a possible change in behaviour?

On 17 November last year Jeremy Hunt was under considerable pressure to deliver an Autumn Statement which went at least some way towards restoring the UK’s economic credibility. Although he decided against raising headline rates of personal taxation a significant amount of revenue will be generated by way of ‘fiscal drag’ with the income tax personal allowance and higher rate threshold fixed at current levels under April 2028. Furthermore various thresholds are to be lowered from April 2023: the income tax additional rate threshold will be reduced from £150 000 to £125 140; the dividend allowance will fall from £2 000 to £1 000 (and then to £500 in April 2024); and the CGT annual exempt amount will be lowered from £12 300 to £6 000 (and will drop further to £3 000 in April 2024).

In light of...