JSR Summary of 2012 Autumn Statement

George Osborne delivered his 2012 Autumn Statement yesterday and we have summarised the key points below:

INDIVIDUALS

The Personal Allowance is to increase from £8,105 to £9,440 from April 2013 for those aged under 65. This is part of a plan to ultimately increase the Personal Allowance to £10,000.
The band of income tax rate at 20% is being reduced from £34,370 to £32,010 from April 2013
The threshold for 40% income tax is to decrease from £42,475 to £41,450 in 2013/14 but will increase by 1% in 2014/15 and 2015/16 to £41,865 and £42,285
The 50% band currently applies where taxable income exceeds £150,000 but the rate will fall to 45% next year.
New universal credit for Income Tax is coming into effect next year as previously announces
The Capital Gains Tax annual exemption is to increase by 1% to £11,100
The Inheritance Tax exemption is to increase in 2015/16 from £325K to £329K
No new tax was implemented on property
From 2014/15, pensions lifetime allowance is to reduce from £1.5m to £1.25m and annual allowance from £50K to £40K. This restriction of pensions tax relief is a £1bn tax rise for high earners
The ISA limit extended from April 2013 to £11,520
The Basic State pension is to increase by 2.5% next year which is a rise to £110.15 per week
Tougher measures on welfare fraud are announced. Changes to welfare benefits will save £3.7bn in 2015/16
Child benefit is to increase by 1% for 2 years with effect from April 2014

Main rate of Corporation Tax cut by 1% to 21% in April 2014 (was set to be 22%), currently set at 23% for April 2013
Increase in Annual Investment Allowance for capital allowances from £25K to £250K from 1 January 2013 for 2 years. This is a huge boost for expanding businesses
A number of tax avoidance loopholes are to be closed immediately, and anti avoidance will be further tackled by an increase of 2,500 in the number of tax inspectors
New general Anti Avoidance Rule still be introduced in April 2013
£5bn to be received over 6 years from undisclosed Swiss bank accounts of UK residents
Temporary doubling of small business rate relief was to end 2011 – already extended to April 2013; now extended further to April 2014
Tax relief for employee shareholder scheme to be introduced
Consultation on new tax incentives for shale gas

The planned 3p rise in fuel duty from January 2013 is now cancelled.
Extra £5bn capital investment to be made in infrastructure – Northern Ireland will get its share
Broad band investment in various areas across UK
Extra £600m for scientific restructure in UK
£270m to be made available for improvements in further education in UK
£1bm to be made available to expand schools and build 100 new free schools and academies in UK

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