Autumn Statement 2013

5th December 2013

Autumn Statement 2013

Highlights, Economic background, Personal tax, Business tax, Tax avoidance and evasion, Other measures, Main income tax rates and allowances & National insurance contributions

Highlights

There were a few surprises among the array of consulted and well-trailed announcements in the Chancellor’s speech:

  • The personal allowance will increase to £10,000 in 2014/15.
  • The higher rate (40%) tax threshold will increase by £415 to £41,865.
  • A transferable tax allowance of £1,000 will be introduced for married couples and civil partners from April 2015.
  • From 6 April 2015 employers will no longer pay Class 1 national insurance contributions on earnings paid up to the upper earnings limit to any employee under the age of 21.
  • In October 2015 a new class of voluntary NICs (3A) will be introduced to allow pensioners who reach state pension age before 6 April 2016 to top up their Additional Pension entitlement.
  • The overall annual individual savings account (ISA) subscription limit for 2014/15 will rise to £11,880, of which £5,940 can be invested in cash.
  • The final exemption period for private residence relief will be halved to 18 months from April 2014.
  • From April 2015, capital gains tax will apply to future gains on residential property owned by non-resident individuals.
  • Legislation to block venture capital trust (VCT) enhanced buyback schemes will take effect from April 2014.
  • New ‘simplified’ IHT rules for trusts will be introduced from April 2015, following further consultation.

To read the full Autumn Statement, please click here.

Related Articles

Goals based investing

Are you giving yourself the best chance of success?

Read more

SmartMoney - March 2021

Read more

Why cash may not be king

How much of your wealth do you currently hold in cash? One paradox of the coronavirus (COVID-19) pandemic is that even as businesses have shut down and jobs have disappeared, some British households have on average been saving more money than they usually do, due to lower spending, according to new research[1].

Read more