Autumn Statement 2012

13 December 2012

The Chancellor, George Osborne, delivered his Autumn Statement on 5 December 2012. Our summary concentrates on the key points of this announcement.

• For those aged under 65, personal allowance increased to £9,440 for 2013/14
• 40% rate of income tax threshold to be £41,450
• 50% rate of income tax to fall to 45% in 2014/15
• Annual allowance for pensions tax relieved savings to be reduced from £50,000 to £40,000 in 2014/15
• Standard lifetime allowance for pensions tax relieved savings to be reduced from £1.5 million to £1.25 million in 2014/15
• From April 2013, overall ISA savings limits to be uprated to £11,520
• Child benefit to increase by only 1% for 2 years from April 2014
• Basic state pension to rise 2.5% next year, to £110.15 per week

Businesses

• Main Corporation Tax rate to be cut from April 2014 by 1% to 21% (from 1 April 2013 rate is 23%)
• Annual Investment Allowance for capital allowances to rise from £25,000 to £250,000 from 1 January 2013 for 2 years
• Tax avoidance loopholes to be closed and anti-avoidance to be tackled in order to secure revenues of £22 billion a year
• New General Anti-Abuse Rule (GAAR) to be introduced
• On 1 January 2013, agreement with Switzerland to recover unpaid UK tax comes into force with expected yields of £5 billion over the next 6 years

Other Issues for Northern Ireland

• Extra capital investment to be made in infrastructure
• Broadband investment in Derry
• Planned 3p rise in fuel duty from 1 January 2013 abandoned

For a more in-depth summary of the Autumn Statement Click Here .