On 5 December 2013 George Osborne, Chancellor of the Exchequer, gave his Autumn Statement in Parliament. Key announcements included:
- A rise for the Personal Allowance, as was long-anticipated, to £10,000 in 2014/15;
- the higher 40% tax rate threshold also increasing to £41,865;
- A new, transferable, tax allowance of £1,000 for married couples and those in civil partnerships from April 2015;
- For employees aged under 21 employers will not have to pay Class 1 National Insurance (‘NI’) Contributions on earnings up to the Upper Earnings Limit;
- Capital Gains Tax (‘CGT’) for future gains will now also apply to NON-resident individuals from April 2015 (previously this had been applied only to UK resident landlords);
- For 2014/15 the annual ISA subscription limit will increase to £11,880 (of which £5,940 can be in cash);
- There were also announcements relating to the continuing clamp-down on tax avoidance, improvements and plans for UK infrastructure, and the proposed inheritance tax (‘IHT’) simplification for trusts.
The full speech transcript can be read here or alternatively view the following video recording:
Finally, George Osborne concluded his Autumn Statement with:
“This country is working through its long term plan. Bringing down the deficit and dealing with the debt. Spending less on welfare and making the big decisions on infrastructure. Living within our means and cutting tax on business. Making work pay and letting people keep more of what they earn. Confidence in the next generation, as they make their way in education and in the workplace. This Statement shows the plan is working. It’s a serious plan for a grown up country. But the job is not done. By doing the right thing, we’re heading in the right direction. Britain’s moving again; let’s keep going.”
If you would like to talk with a tax specialist about how any of the changes might affect your own situation, please feel free to contact us at Taxfile for a no-obligation initial consultation. We have accountancy experts in Tulse Hill and Dulwich, South London and in Exeter, Devon. Contact us for further information or book an appointment on-line.