5 min read 24 Nov 22
In his much-awaited Autumn Statement, Jeremy Hunt, the recently appointed Chancellor of the Exchequer, confirmed that the UK is officially in a recession and detailed the government’s plans to try to grow the economy through a number of spending cuts and tax rises.
So, what are the key changes in the Autumn Statement and how might they affect you?
Changes to taxation and wages:
The Scottish parliament has the power to set income tax rates and bands that apply to Scottish taxpayers’ non savings, non-dividend income. The Welsh government has the power to set income tax rates applicable to non-savings, non-dividend income.
Although these changes are not due to come into effect immediately, making use of tax-efficient investments could help keep you on track of your long-term financial plan. And we believe ISAs (Individual Savings Accounts) are one of the best ways you can do this. When you invest through an ISA you don’t have to pay personal income tax on any interest or dividends you receive from your investments or CGT on their growth.
However, it’s important to remember that ISA tax rules may change in the future and ISA tax advantages depend on your individual circumstances.
Changes to benefits and state pension
Bills and the cost of living
Changes in policy are likely to affect the budgets of many households and may add new pressure at home. If you’re struggling with the cost of living or concerned about how any of the tax rises might affect you, it's important to find out what help is available.
Life is full of twists and turns, so if you’re looking for help managing finances you may find it useful to work with a financial advisor. A financial advisor will be able to look at your overall situation and longer-term goals to create a manageable plan for you. They’ll be able to look at ways to help you reduce the amount of inheritance tax and/or capital gains tax you pay through estate planning, look at things like pension contributions, unused ISA allowances or generally ways to make your money work harder. The Autumn Statement changes don’t come into immediate effect, so tax year-end planning could really help you get on the front foot.
If you don’t already have a financial adviser you can find one our ‘Get financial advice’ page.
To learn more about what help is at hand, you may find it useful to contact the Citizens Advice Bureau. They offer advice and support on paying bills, locations of nearest food banks, mental health support and other useful information about coping in today’s uncertain times. You can also find a page on their website to help with the cost of living.
Please bear in mind that M&G Investments are unable to give financial advice. If you are unsure about the suitability of your investment, speak to your financial adviser. The views expressed here should not be taken as a recommendation, advice or forecast.
The value of any fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested.
Remember, you can take a look at our glossary for explanations of the investment terms used throughout this article.
The views expressed here should not be taken as a recommendation, advice or forecast.
The value and income from any fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise. There is no guarantee that any fund will achieve its objective and you may get back less than you originally invested.