George Osborne, Chancellor of the Exchequer, delivered his Autumn Statement on 5 December 2012. Some of the key tax issues arising are as follows:-
• Corporation tax rate to be cut by an additional 1% from 2014 to 21% (rather than 22% as previously announced).
• The Annual Investment Allowance will be increased from £25,000 to £250,000 per annum for a 2 year period commencing from 1 January 2013.
• Income tax personal allowance to go up to £9,440 next year, £235 more than previously announced. The rise will be extended to higher rate tax payers.
• Threshold for 40% rate of income tax to rise by 1% in 2014 and 2015 from £41,450 to £41,865 and then £42,285. The cut in the threshold from the current £42,475 to £41,450 in 2013 was announced previously.
• Inheritance tax threshold to rise from £325,000 now to £329,000 in 2015/16.
• Planned 3p per litre rise in fuel duty scrapped
• Capital gains tax annual exempt amount to increase by 1% over the same period, reaching £11,100
• Cut in annual tax relievable allowance for contributions to pension schemes to £40,000 per annum from 2014/15 (currently £50,000).
A more detailed summary is available in our Autumn Statement Review, published in the Resources section of our website.
Posted – 06/12/2012