Key announcements from the Chancellor at a glance
- 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.