Murray Beith Murray LLP is a leading Scottish private client law firm.
For 175 years we have specialised in meeting the legal, financial and administrative needs of individuals and families, family trusts, charities and private companies.
Murray Beith Murray LLP is a leading Scottish private client law firm.
For 175 years we have specialised in meeting the legal, financial and administrative needs of individuals and families, family trusts, charities and private companies.
Autumn is the season of traditions. The clocks go back, spooky season comes and goes, the Christmas lights go up, and, perhaps the most eagerly anticipated tradition, the Chancellor’s Autumn Statement is delivered.
With taxes on individuals at an unprecedented high, a focus on tax reduction was the Chancellor’s tagline of the day. These reductions were focussed on national insurance contributions. Importantly for Scottish taxpayers, national insurance, unlike income tax rates, is not a devolved tax. Therefore, the announced changes apply to both Scottish and “rest-of-UK” taxpayers.
For employed individuals paying Class 1 National Insurance Contributions, the tax rate will drop from 12% to 10%. This rate currently covers monthly earnings between £1,048 to £4,189. The rate reduction will apply from 6 January 2024 onwards.
Self-employed taxpayers currently pay Class 2 and Class 4 National Insurance Contributions. From 6 April 2024, the Class 4 rate will be reduced from 9% to 8%. This rate currently covers profits between £12,570 and £50,270. In addition, Class 2 contributions, currently £3.45 per week, will no longer be required to be paid. The option to pay these voluntarily shall remain.
There were several further significant announcements in yesterday’s statement:
In keeping with a more recent tradition, media speculation of overhauls to Capital Gains Tax (CGT) or Inheritance Tax (IHT) were unfounded. A now well-established tradition, that will undoubtably continue into another year.
If this article has raised any questions or you would like to discuss your affairs with our specialist tax advisors then please complete our contact form or call 0131 225 1200.
Murray Beith Murray is a private client practice, made up of specialist lawyers from a variety of legal disciplines, including experts in asset protection and estate planning. The firm was established in 1849, as advisors for generations of clients, committed to our values of integrity, expertise and trust. This aim and these values continue to this day as does our commitment to be here when you need us.
