11th December 2013
Autumn Statement 2013
Filed Under: Tax
Following on from the Chancellor’s Autumn Statement last week I wanted to highlight the key points that came to light:
- The OBR has predicted that growth will be higher than originally thought, 1.4% this year and 2.4% in 2014.
- The OBR has also forecasted that unemployment will be 7.6% and 7% by the end of 2013 and 2014 respectively. Remember that Marc Carney, the Governor of The Bank of England, pledged that borrowing costs would not rise until the UK jobless rate hit 7%.
- State pension to increase by £2.95 per week from April 2014.
- State pension age to increase to 68 from mid 2030s and 69 from mid 2040s.
- The final period Principle Private Residence relief is going to be halved from 36 months to 18 months. This move is clearly targeted at property developers who manipulate this relief in order to reduce their capital gains tax bills.
- A crackdown on partnerships to ensure that the tax advantages are not being abused, particularly around members who are really disguised employees, with the aim of reducing national insurance contributions.
- From April 2015 futures gains made by non-residence landlords on residential properties will be subject to capital gains tax.
- Tax free allowance to increase to £10,000 from April 2014 as expected. There will be a further rise in 2015 in line with inflation.
- From April 2015 some married couples and civil partnerships will be able to transfer £1,000 of their tax free allowance. This will have a limited impact as only certain couples will qualify depending on income levels. (please see my earlier blog on this topic 30th September 2013)
- Employers’ National Insurance Contributions to be removed on under 21 year olds, affecting 1.5 Million jobs.
- Petrol taxes frozen.
- Welfare spending to be capped.
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