The Autumn Statement has now been delivered and gives an insight into the mindset and outlook of the Government moving into the next tax year.
There are many updates so we have condensed the important bits below for you.
- Tax credits and Child benefit will have any increase in award tied to a fixed 1 percent from April 2013, rather than the current by-inflation annual increase. The under inflation rises will be held until 2016.
- If you are investing on behalf of your child, into a child trust fund or junior ISA their is an increase in the amount you can invest per annum, from £3,600 to £3,720.
- ISA savings allowance will increase by £240 from April 2013. New limit is £11,520.
- Increase in personal allowance next April to £9,440. It was announced in this year's Budget that the allowance would be £9,205, but this has now been extended by an additional £235. This is offset by a cut of £235 to the point where the higher rate tax band starts. From April 2013, people earning more than £41,450 would pay a proportion of earnings at the higher rate (40%).
- Commitment to increase higher rate starting point by 1 percent each year from 2014 to 2016.
- Work related and Housing benefits to have below inflation increases fixed at 1 percent over next three years.
- Basic state pension to be £110.15 per week from April 2013.
- £50,000 cap on claimable tax relief on pension contributions to be lowered to £40,000.
- The Fuel Duty Escalator has been removed, so the scheduled (as per escalator) rise in January of 3 pence per litre has been axed.
- Main rate Corporation Tax to be reduced to 21 percent from April 2014. A further 1 percent drop.