With the UK economy performing better than expected this year, the Chancellor attempted in the Autumn Statement to acknowledge this improvement, but also to continue with the fiscal discipline which had played a part in achieving it.

The Statement contained a few more changes than expected. More detail will emerge over the coming period, including draft legislation for the 2014 Finance Bill. Below is a brief summary of some of the main points.

  1. The personal allowance will increase to £10,000 in 2014/15.
  2. The higher tax rate (40%) tax threshold will increase by £415 to £41,865 in 2014/15.
  3. In certain circumstances, married couples and civil partners will be able to transfer £1,000 of their personal allowance to their spouse / partner in 2015/2016.
  4. From April 2015, employers will no longer pay Class 1 National Insurance Contributions on earnings up to the upper earnings limit to any employee under the age of 21.
  5. In October 2015, a new class of voluntary National Insurance Contributions (Class 3A) will be introduced to allow pensioners who reach state pension age before 6 April 2016 to top up their Additional Pension entitlement.
  6. CGT Private Residence Relief – the final exemption period is halved to 18 months from April 2014.
  7. Introduction of CGT for non-residents disposing of residential property from April 2015.
  8. Measures to tackle tax avoidance, including for some types of partnerships and employment intermediaries.
  9. The overall ISA subscription limit for 2014/15 will increase to £11,880, of which £5,940 can be invested in cash.

 

This is a summary of some of the main changes for information purposes only. For further details, please contact a member of our Tax Department on 02882 250253, or by email:

Arnold Jackson             arnold@mmjca.com

Jonathan Potter                        jonathan@mmjca.com

Emma Coll                   emma@mmjca.com

Killian Freehill               killian@mmjca.com

Further information is also available on the government website, via the link below:

https://www.gov.uk/government/topical-events/autumn-statement-2013