Kirkpatrick & Hopes - Succession Planning Accountants

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The Chancellor’s Autumn Statement

If you want the full statement you can download it here. All 95 pages of it and £45 if you want to buy a hard copy!

For those of you who have better things to do, here is a summary:

The following apply from 6th April 2013 (or earlier)   

Personal tax measures:

  • The tax-free personal allowance increases from £8,105 to £9,440
  • The 40% tax band starts at £41,450 (was £42,475)
  • The £150,000 tax band falls from 50% to 45%
  • ISA contribution limit to be raised to £11,520

Business tax measures:

  • The annual investment allowance for capital expenditure will increase from £25,000 to £250,000 for a fixed two- year period starting on 1 January 2013
  • Certain small businesses can account for tax profits using a simple cash income and expenditure statement
  • Unincorporated businesses will be able to opt for a flat-rate expense allowance basis.

Other measures:

  • The 3p fuel duty rise on 1 January 2013 has been abolished
  • No new taxes on property values
  • Introduction of further measures against tax evasion, such as recruiting additional specialist tax inspectors

The following apply from April 2014

Personal tax measures:

  • The 40% tax band will start at £41,865
  • The annual allowance for pensions tax relieved savings will be reduced from £50,000 to £40,000
  • The standard lifetime allowance for pensions tax relieved savings will be reduced from £1.5 million to £1.25 million
  • The Capital Gains Tax annual exemption will be increased to £11,000

Business tax measures:

  • The main corporation tax rate will fall to 21% (from 23%)

The following apply from April 2015

Personal tax measures:

  • The 40% tax band will start at £42,285
  • The tax-free inheritance tax band will increase to £329,000 (from £325,000)
  • The Capital Gains Tax annual exemption will be further increased to £11,100

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