Sean McCann, Chartered Financial Planner at NFU Mutual, said: “The Chancellor’s main Income Tax change was to reduce the point the additional 45% rate becomes payable from £150,000 to £125,140 from April 2023, which is expected to raise £3.7bn over the next five years.

“Jeremy Hunt froze the tax-free personal allowance and the thresholds for paying 40% income tax and child benefit tax for an extra two years until 2028, which means more people will be dragged into paying higher rates of tax as incomes increase.

“One way to reduce the impact for those who find themselves moving into a higher tax band or being caught by the Child benefit tax charge is to pay more into pensions which reduces taxable income.

“The Chancellor is halving the annual tax-free Dividend Tax Allowance from £2,000 to £1,000 next year and then halving it again to £500 in 2024 in a move which will raise the government £3bn over the next five years. This will impact those farmers who trade as limited companies and pay themselves via dividends.

“Slashing the annual exemption for Capital Gains Tax from £12,300 to £6,000 next year and £3,000 in 2024 will raise £1.6bn over the next six years. This could impact farmers selling farmland or agricultural property that has increased in value since they acquired it. However, there has been no change to the Capital Gains Tax reliefs available which will be welcome news for many farmers.

“Those reliefs are not available to those selling or gifting buy-to-let property. Reducing the CGT exemption could encourage more people impacted by the rise in mortgage rates to offload these properties before the exemption is reduced.

“Although inheritance tax thresholds were frozen until 2028, meaning more families will be caught in the net, the Chancellor did not announce any changes to Agricultural or Business Property Relief which can help reduce inheritance tax bills for farmers.”

Chris Walsh, farm specialist at NFU Mutual, said: “Doubling the energy support to £200 for families who use heating oil, liquified petroleum gas, coal or biomass this winter is one of the few benefits for farmers and rural people in the Chancellor’s Statement. However, these payments will only go a small way to offset increased costs.

“Businesses facing huge electricity and gas costs, in particular glasshouse growers and horticultural businesses, will be interested in the details of the new energy efficiency taskforce being introduced next year.

“Extending business rate reliefs for retail and hospitality until 2024 and increasing it to 75% up to £110,000 per business could help those farmers who have diversified into farm shops or cafes.”