Posted: 06/12/12 by MHA MacIntyre Hudson
The 2012 Autumn Statement, announced on 5 December, was more like a spring Budget than many of its recent predecessors – particularly in relation to the many tax announcements, says MacIntyre Hudson, Northampton-based chartered accountants and business advisors, who have identified some of the key changes for fellow Chamber members below.
These key changes include:
- The personal allowance will be raised to £9,440 in 2013/14.
- The 40% higher rate threshold will increase by 1% in both 2014/15 and 2015/16.
- The yearly increase in the annual exempt amount for capital gains tax will be 1% for 2014/15 and 2015/16.
- As already announced, employee shareholders will have different employee rights from other employees and will receive a minimum of £2,000 of shares.
- Gains will be exempt from capital gains tax on up to £50,000 of shares acquired by employees taking up the new employee shareholder status from April 2013.
- There will be consultations on expanding the list of qualifying investments for stocks and shares ISAs to include shares traded on equity markets for small and medium enterprises such as the Alternative Investment Market.
- The inheritance tax nil rate band will rise by 1% in 2015/16.
- From 2014/15, the lifetime allowance for pension savings will be reduced from £1.5 million to £1.25 million, and the annual allowance will be reduced from £50,000 to £40,000.
- The capped pension drawdown limit will be increased for pensioners of all ages with these arrangements from 100% to 120% of the value of an equivalent annuity.
- The main rate of corporation tax, currently 24% will be cut to 21% – 1% more than previously announced – with effect from April 2014.
- The annual investment allowance limit will increase from £25,000 to £250,000 for two years for all qualifying investments in plant and machinery made on or after 1 January 2013.
- The temporary doubling of the small business rate relief will be extended for a further year from 1 April 2013.
- A number of anti-avoidance measures were announced including various enhancements to HMRC’s powers and resources.