The Chancellor’s Autumn Statement

The Chancellor’s Autumn Statement included certain announcements about tax changes. Here are some of the main tax points:

Personal tax:

Personal allowance to increase to £9,440
The annual allowance for pensions tax relieved savings will be reduced from £50,000 to £40,000
Standard lifetime allowance for pensions tax relieved savings will be reduced from £1.5 million to £1.25 million, with transitional protection for those affected

Corporation tax:

In addition to the Budget 2012 announcement, the main Corporation Tax (CT) rate for Financial Year 2014 will be reduced by a further 1% to 21%
The Annual Investment Allowance will be increased from £25,000 to £250,000 per annum for a 2 year period
A simpler income tax scheme for small unincorporated businesses will be introduced for the tax year 2013-14 to allow eligible self-employed individuals and partnerships to calculate their profits on the basis of the cash that passes through their business, and generally not having to distinguish between revenue and capital expenditure; in addition all unincorporated businesses will be able choose to deduct certain expenses on a flat rate basis commencing from 1 January 2013

For further details, please do not hesitate to contact a member of our team.

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