Autumn Statement 2014 - Key Points

Chancellor George Osborne delivered his Autumn Statement on 3 December 2014.  Please see below some key points.

State of economy

  • 3% growth forecast in 2014, up from 2.7% predicted in March
  • Inflation predicted to be 1.5% in 2014, falling to 1.2% in 2015
  • Unemployment set to fall to 5.4% in 2015

Stamp Duty

  • Reform of stamp duty on residential property so that rates apply only to that part of the property price that falls within each band
    • % on first £125,000
    • 2% on £125,001 to £250,000
    • 5% on £250,001 to £925,000
    • 10% on £925,001 to £1,500,000
    • 12% on anything higher than £1,500,001
  • Stamp duty will be reduced for 98% of house purchases   

Fuel Duty

  • Fuel duty to be frozen

Savings and pensions

  • Spouses will be able to inherit their partners' ISAs tax free upon their death
  • ISA threshold increases from £15,000 to £15,240 in April 2015

Taxation

  • Personal tax allowance to increase to £10,600 on 6 April 2015
  • Higher rate income tax threshold to rise to £42,385 on 6 April 2015
  • Air Passenger Duty to be scrapped for under-12s from 1 May next year and for under-16s the following year

Businesses

  • Employer NICs up to the upper earnings limit will be abolished for
    apprentices aged under 25 years from April 2016
  • The annual £2,000 Employment Allowance for employer NICs will
    be extended to care and support workers from April 2015
  • A full review of the business rates system will be carried out

 

The full statement can be found here - https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/382327/44695_Accessible.pdf