Autumn Statement reaction from Shaun Davison

The freezing of tax allowance thresholds – the so-called ‘fiscal drag’ - will see more people drawn into paying tax in the first place, more finding themselves in the higher rate band, and with a significant reduction in the additional rate threshold, there will be many more regretting that Kwasi Kwarteng’s abolition of the 45p rate was dead in the water within 72 hours of it being announced.

For investors there are particular sources of pain.  The halving of both the £2,000 dividend allowance and the Capital Gains Tax (CGT) annual exemption next year and again the following year will particularly hit those with investment portfolios who receive dividend income and who buy and sell securities in small amounts during the year.

At least the Chancellor left CGT rates alone; this was one of the few taxes which were not covered by the 2019 manifesto promise not to raise rates.