Autumn Statement 2012 6 December 2012
The Chancellor George Osborne has just announced his autumn statement and a summary of same if provided below:
Individuals
• Personal allowance to increase in April 2013 to £9,440
• Threshold for 40% rate of Income Tax to increase by 1% in 2014/15 and 2015/16 to £41,865
and £42,285
• New universal credit for Income Tax is coming into effect next year as announced previously
• CGT annual exemption to increase by 1% to £11,100
• Increase in IHT exemption in 2015/16 from £325k to £329k
• No new tax on property
• From 2014/15, pensions lifetime allowance 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
• ISA limit extended from April 2013 to £11,520
• Basic state pension to increase by 2.5% next year – basic pension to rise to £110.15 / week
• Tougher measures on welfare fraud are announced. Changes to welfare benefits will save
£3.7bn in 2015/16
• Child benefit to increase by 1% for 2 years with effect from April 2014
Businesses
• Main rate of Corporation Tax cut by 1% to 21% in April 2014
• Increase in Annual Investment Allowance for capital allowances from £25k to £250k from
1/1/13 for 2 yrs. 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 to 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
Other issues
• 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 to include Derry/Londonderry
• Extra £600m for scientific research infrastructure in UK
• £270m to be made available for improvements in further education in UK
• £1bn to be made available to expand schools and build 100 new free schools and academies
in UK
