Farley And Partners

AT A GLANCE

A list of the key announcements from the Chancellor George Osborne’s Autumn Statement speech.

BUSINESS 

BUSINESS RATES

Small business rate relief will be doubled  for another year.

The inlation-linked increases to business rates will be capped at 2%.

There will be a review of the structure of business rates.

The business rates discount for certain high street shops will increase by 50% to £1,500.

RESEARCH AND DEVELOPMENT

Research and development tax credit will increase to 230% for small and medium sized

businesses and 11% for large irms.

BUSINESS FINANCE

The British Business Bank will be expanded.

The Funding for Lending Scheme will be extended by a year until January 2016.

NATIONAL INSURANCE

Businesses will not have to pay national insurance contributions when they hire apprentices who are under 25, up to the upper earnings limit.

National insurance contributions for employing anyone under 21 will be abolished from April 2015.

DIVERTED PROFIT TAX

Proits generated by multinational companies in the UK which are then moved ofshore will be taxed at 25%.

BANKS

The amount of proits that banks can ofset against losses carried forward from the inancial crisis will be limited to 50%.

PERSONAL

INCOME TAX

The personal tax allowance will increase to £10,600 a year from April 2015. The higher rate threshold will rise from £41,865 this year to £42,385 next year.

ISAs 

The annual ISA allowance will increase to £15,240 a year from April 2015.

ISA savings that are inherited by a surviving  spouse from a deceased partner will retain  their tax-free status.

PENSIONS 

The 55% tax on unused inherited pension pots will be scrapped.

People who die before they are 75 will be able to pass on joint life or guaranteed term annuities tax free.

RESIDENTIAL PROPERTY STAMP DUTY

The way stamp duty is applied to residential properties will change to a marginal rate system. From midnight on 3 December 2014,rates will only apply to the proportion of the property price that falls within each band. The rate will be 0% on the irst £125 000, rising to 12% on prices above £1.5 million.

NON-DOMICILES

Charges for non-domiciles resident in the UK for 12 of the last 14 years will increase to £60,000. A new £90,000 charge will be introduced for non-domiciles resident in the UK for 17 of the last 20 years.

AID WORKERS

Aid workers who die in service will be exempt from inheritance tax.

OTHER ANNOUNCEMENTS

DEVOLUTION

The Northern Ireland Executive will be able to control corporation tax within this parliament if it can prove that it can cope with the inancial implications.

The Welsh Government will get full powers over the business rates regime.

Draft clauses will be released in the new year for devolution of income tax power to Scotland.

NHS FUNDING

The NHS will get an extra £2 billion a year until 2020. There will also be £1.2 billion of investment in GP services across the country.

TAX AVOIDANCE

A continued crackdown on tax avoidance and evasion will raise at least £5 billion in the next parliament.

STUDENT LOANS

Masters students will be able to get government-backed student loans of up to £10,000 to fund their studies.

AIR PASSENGER DUTY

Air passenger duty will be abolished for under 12s from May 2015 and for under 16s from March 2016.

VAT REFUNDS

Hospice charities, search and rescue services, and air ambulances will beneit from VAT refunds.

CARERS

Carers will be included in the employment allowance which reduces employer national insurance contributions by up to £2,000.

FUEL DUTY

The freeze on fuel duty will continue.

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