Key Autumn Statement points are outlined below. Draft legislation will be published on 10 December although a small amount of draft legislation has been published today for some anti-avoidance provisions which are coming into immediate effect.
Growth forecast for this year increased from 0.6% to 1.4%, for next year revised up from 1.8% to 2.4%, and also up for the following four years to 2.2%, 2.6%, 2.7% and 2.7%.
BENEFITS AND PENSIONS
In April 2014, the state pension will rise by £2.95 a week.
State pension age increased to 68 in the mid-2030s and to 69 in the late 2040s.
From October 2015, those who reach pension age before 6 April 2016 will be given the opportunity to pay voluntary National Insurance Contributions to boost their state pension.
TAXES AND ALLOWANCES
Capital gains tax to be imposed on future gains made by non-residents who sell residential property in the UK but not until April 2015.
The rules for capital gains tax Principal Private Residence Relief are to be changed from April 2014. The “final period” exemption will be reduced from 36 months to 18 months.
Some tax incentives for married couples and civil partners to start in April 2015 benefiting eligible couples by up to £200 in 2015/16.
A new tax relief to be introduced in April 2014 for investment in social enterprises and new social impact bonds.
Tax allowances encouraging investment in shale gas to cut tax on early profits by 50%.
Employer National Insurance contributions to be scrapped on 1.5 million jobs for young people from April 2015. (For under-21s earning below £813 per week)
The personal income tax allowance to rise to £10,000 from April 2014, and then from 2015-16 to increase by the Consumer Prices Index (CPI).
Stamp duty on shares purchased in exchange traded funds to be abolished.
From 1 January 2014, the rate of the bank levy will rise to 0.156%, and is estimated to raise £2.7bn in 2014-15 and £2.9bn each year from 2015-16.
Petrol taxes stay frozen – planned rise of 2p per litre in 2014 scrapped.
Increased funding for science, technology and engineering courses.
An additional 20,000 apprenticeships to be funded over the next two years.