Our experts respond to the Chancellor’s Autumn Statement
On the 17 November 2022, Chancellor Jeremy Hunt outlined tax, welfare and public service spending decisions in his Autumn Statement 2022. Taking a broad perspective across the real estate, environmental infrastructure planning and private wealth sectors, our expert lawyers have responded to the statement, covering what the measures mean in real terms.
Partners Richard Marsh and Marilyn Mckeever and legal director Lorna du Sautoy have been quoted in New Civil Engineer and IFA Magazine respectively, commenting on yesterday’s autumn budget announcement.
In an article for New Civil Engineer, Richard Marsh criticised the lack of clarity regarding renewable infrastructure projects, stating:
‘The Autumn Statement references support for the ‘roll-out of cheap, clean renewables, including wind and solar’ but without providing specific mechanisms for encouraging the enormous investment in solar and wind energy infrastructure that we need in order to meet our net zero targets.’
Meanwhile, in an article for IFA Magazine partner Marilyn McKeever notes a lack of surprise regarding the tax cut measures included Mr Hunt’s autumn budget:
‘So what has the Chancellor done? His mantra was that he would ‘ask more of those who have more’. As expected, he proposes to cut the dividend allowance from £2,000 to £1,000 next year and then to £500. The capital gains tax annual exemption is to be halved to £6,000 next year and further cut to £3,000 in 2024. The threshold at which the additional rate tax of 45% kicks in is to be reduced from £150,000 to £125,140; the level at which the personal allowance tapers away for high earners.’
Finally, in the same article, Lorna du Sautoy reacted to the Chancellor’s decision to cut the annual exemption rate for capital gains. She noted that:
‘We should expect some turbulence if enough landlords react by deciding to sell off their portfolios before the relevant tax years commence also causing prices to fall.
Against a back drop of rising rents and falling property prices the Chancellor’s reversal of the mini-budget stamp duty cuts (from 31 March 2025) becomes an effective way to boost tax returns on property transactions in the short to medium term though many will wonder how the private rented sector will cope particularly in areas where rental housing supply is already squeezed.’
To read these articles in full, please visit New Civil Engineer and IFA Magazine.