The Chancellor’s Autumn Statement – What does it mean for you?

Read on to find out our KSK main points from the Autumn Statement last week. For more information on any of our points, or to find out more about the whole Autumn Statement, please contact the either Rachael or Anthony via any of our social media or by calling the office on 01234 301000.

Businesses

• Employers national insurance contributions have been scrapped for the under 21’s.
• Business rates are to be capped at 2% rather than linked to RPI inflation with discounts for some retail premises in England.
• Business moving to high street properties that have been empty for 18 months will have their rates cut by 50%.
• Businesses will be able to pay their rates over 12 months rather than 10 months with effect from 1 April 2014.
• Amendments will be made to existing legislation to ease the restrictions on the availability of loss relief for corporation tax when companies change ownership.
• Boost to government start up loan scheme to help 50,000 more people start their own business.
• New tax relief to be introduced from April for investment in social enterprises and social impact bonds.
• Those with Save AS You Earn Schemes will be able to invest £500 per month rather than £250 per month.
• Stamp Duty on shares purchased in exchange trade funds to be abolished.
• Export finance capacity available to support British businesses has been doubled to £50bn.

Individuals and Families

• Personal allowance is to increase to £10,000 from April 2014 and increase by consumer price index from 2015/2016.
• Married Couples tax break will be introduced from April 2015 allowing people to transfer £1,000 of their income tax allowance to their partners.
• Investors will be able to save £11,880 in a stocks and shares ISA for the 2014/2015 tax year.
• Properties that have built annexes for family members to live in will get 50% off their council tax bills from next April. “Granny Flats” are regarded as separate dwellings and have previously been charged full rates.

Capital Gains Tax

• Capital gains tax will be imposed on non-residents who sell UK residential property from 2015.
• UK residents selling a second home normally have the last 3 years disregarded for capital gains tax provided they have lived there at some point. This has been reduced to 18 months from April 2014.

Pensions

• State pension aged to be increased to 68 for those currently in their 40s and to 69 for those currently in their 30s.
• State pension to rise by £2.95 per week from April 2014.
• Existing pensioners will be able to make voluntary contributions if they have gaps in their work history in order to ensure they get a higher state pension.

Transport

• Petrol taxes have been frozen with the planned 2p rise scheduled for next year scrapped.
• Train fares are to rise with inflation and not at 1% above RPI as planned.
• Tax discs to show that road fund licences have been paid to be replaced with an electronic system with the option of paying by monthly direct debit.

Education

• An extra 30,000 places are to be created at English universities in 2014/2015 and the current cap on student numbers for the following year has been abolished.
• Science, technology and engineering courses are to receive more funding.
• An additional 20,000 apprenticeships are to be funded over the next 2 years.
• All pupils at state schools in England in Reception, Year 1 and Year 2 are to get free school lunches from next September.

Benefits

• Anyone aged 18-21 claiming benefits without basic maths and English will be required to take training or lose their entitlement.
• Anyone unemployed for more than 6 months will be forced to start training, take work experience or take community work placements or will lose their entitlement.

Housing

• Workers living in council houses are to be given priority on housing lists if they need to move to work.
• Councils to sell off most expensive social housing and run down urban housing estates are to be regenerated.