The Chancellor George Osborne has now delivered his Autumn Statement. Here is a quick summary of the key points:
- Forecast growth downgraded from +0.8% to -0.1% for the current year
- Forecast for the next four years also downgraded since forecast in March
- Targeting tax avoidance and evasion
- Tax evasion cases up by 80%
- Pension lifetime limit down in April 2014 from £1.5m to £1.25m
- Pension annual allowance down in April 2014 from £50,000 to £40,000
- Government to tackle welfare fraud
- £5bn capital investment into infrastructure, such as roads and rail
- £1bn to expand schools and build 100 new free schools and academies
- ISA limit to increase to £11,520 from April 2013
- Small businesses with turnover up to £77,000 can apply for cash accounting for tax purposes from April 2013
- Benefits during working age to be restricted to 1% increases for the next two years
- Child Tax Credit and Working Tax Credit to be restricted to 1% increases for the next two years
- Higher rate threshold, capital gains tax annual exemption and inheritance tax nil rate band restricted to 1% increase per year, for the next two years
- Personal allowance to increase to £9,440 from April 2013
- Personal allowances increases will result in person on minimum wage having a tax bill that is half of that in 2010
- Empty property relief for rates is to be extended from three months to 18 months from October 2013, for newly built properties
- Annual Investment Allowance to increase from £25,000 to £250,000 on 1 January 2013, for a period of two years
- Planned 3p per litre rise in fuel duty, due to apply in January 2013, is to be scrapped
- Main rate of corporation tax to reduce to 21% from April 2014