Autumn Statement 2023

Eight months on from the 2023 UK Budget, Chancellor Jeremy Hunt delivered his second Autumn Statement in slightly better circumstances than his first.  With inflation coming down again in the run up, rumours that tax cuts could be on the agenda began to circle with leaks about potential changes to Inheritance Tax.

Now the dust has settled, here are the key takeaways from this week’s statement.

Taxes
‍Cuts to the main rate of National Insurance from 12% to 10% in January will affect approx. 27 million people in the UK. 

There was no mention of any thawing of the freezes to income or inheritance tax, or planned reductions to Capital Gains and Dividends allowances meaning any expats who have investments back in the UK essentially face a real terms pay cut in the coming months. 

UK Pensions Lifetime Allowance Update
‍With strong opposition from across the house, some commentators thought the decision to remove the UK Pensions Lifetime Allowance made in the March Budget might be rolled back.  However, the government have confirmed this will indeed be abolished from April 2024. For many expatriates with UK pensions, this could present new planning opportunities.

Consultation On UK Pensions
‍With the goals of improving outcomes for savers and increasing capital flow to the UK’s ‘most promising growth companies,’ Hunt confirmed his plans to push ahead with his Mansion House reforms whilst also consulting on enabling savers to be able to take existing pensions with them when moving jobs.

To put this Autumn Statement in some perspective, since 2020, the UK has had three Prime Ministers, Three Chancellors, and numerous Autumn/Spring Statements and Budgets!

And so with a general election around the corner and a long history of politicking with UK pensions and tax allowances, rather than spending just short of an hour watching the Statement in full, you may be better served arranging a consultation with an experienced Financial Adviser who can help you take a look at all your investments and how you may fare in a number of different circumstances.

Speak to Skybound Wealth Today
‍Whether you are an existing client, or an international investor with questions around your UK assets, Skybound Wealth's team of global financial planning experts are on hand to talk you through the opportunities available to you.