Second 2022 Finance Bill to be enacted shortly
Second 2022 Finance Bill to be enacted shortly
The short second 2022 Finance Bill containing some Autumn Statement measures passed its third reading in the House of Commons on 30 November 2022. It will now proceed to the House of Lords, and is expected to be enacted shortly, when it will be known as the Finance (No. 2) Act 2022.
The measures contained in this Bill are:
- Energy (oil and gas) profits levy: rate of levy increased from 25% to 35%; amount of additional expenditure reduced from 80% to 29%; and period for which the levy applies extended from 31 December 2025 to 31 March 2028
- Corporation tax: R&D relief rates from 1 April 2023:
- RDEC scheme: rate of relief increased from 13% to 20%
- SME scheme: additional relief on costs reduced from 130% to 86%; repayable credit reduced from 14.5% to 10%
- Income tax:
- Period for which the personal allowance and basic rate bands frozen extended from 2025/26 to 2027/28
- Additional rate threshold reduced from £150,000 to £125,140 from 2023/24 until 2027/28
- Dividend nil rate reduced from £2,000 to £1,000 for 2023/24, and to £500 for 2024/25 onwards
- Capital gains tax: Annual allowance reduced from £12,300 to £6,000 for 2023/24, and to £3,000 for 2024/25 onwards
- Inheritance tax: Period for which the rate bands and thresholds are frozen extended from 2025/26 to 2027/28
- Vehicle excise duties: removal of exemptions for electric vehicles
- Scale charge rate increases for electric vehicles from 2025/26 onwards.
It is anticipated that the Spring 2023 Budget will contain further measures which will be enacted as FA 2023.