Autumn Statement 2012

Key announcements from the Chancellor at a glance

Economic Growth

  • Forecasts for the next few years are: 1.2% in 2013, 2% in 2014, 2.3% in 2015, 2.7% in 2016 and 2.8% in 2017.

Pensions and Benefits

  • Most working-age benefits to rise by 1% for each of the next three years.
  • From 2014/15 lifetime pension relief allowance to fall from £1.5m to £1.25m – annual allowance cut from £50,000 to £40,000.
  • Capped drawdown limit increased for pensioners of all ages with these arrangements from 100% to 120% of the value of an equivalent annuity.
  • Basic state pension to rise by 2.5% to £110.15 a week.
  • Child benefit to rise by 1% for two years from April 2014.

Taxes and Allowances

  • Personal basic income tax allowance for those aged under 65 increasing by £1,335 in cash terms to £9,440 in 2013/14.
  • Higher rate threshold to rise to £41,450 in 2013/14, to £41,865 in 2014/15, and in 2015/16 it will be £42,285.
  • Main rate of corporation tax to be cut by extra 1% to 21% from April 2014.
  • Capital gains annual exempt will increase to £11,000 in 2014/15 and £11,100 in 2015/16.
  • Temporary doubling of small business rate relief scheme to be extended by further year to April 2014.
  • Inheritance tax threshold to be increased to £329,000 in 2015/16.
  • Bank levy rate to be increased to 0.130%.
  • £5bn over six years expected from treaty with Switzerland to deal with undisclosed bank accounts.
  • ISA contribution limit to be raised to £11,520 from 6 April.
  • Prosecutions for tax evasions up
    80%, with anti-abuse rule to come in.

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