Autumn Statement: The Key Points At A Glance

Written By Unknown on Rabu, 03 Desember 2014 | 23.21

The main measures and forecasts as outlined by the Chancellor George Osborne in his Autumn Statement:

TAX

:: Stamp Duty rates overhauled. Top rate now 12% on properties worth more than £1.5m effective from midnight Wednesday. There will be no duty on properties worth up to £125,000 then 2% rate on the portion up to £250,000 then 5% up to £925,000, then 10% up to £1.5m.

:: Higher rate income tax threshold to rise to £42,385 next year.

:: Income tax-free personal allowance to rise to £10,600 rather than the planned £10,500 next year, giving wage boost of £825 a year.

:: ISAs can be inherited tax free.

:: Fuel duty remains frozen. 

:: People who die under 75 to be able to pass on annuities, tax free.

CORPORATE TAX

:: A so-called  'Google Tax'  will introduce a levy of 25% on profits shifted abroad by multi-national firms. The Diverted Profits Tax aims to raise more than £1bn over five years.

:: Banks to pay almost £4bn more in tax over next five years, with profits which can be offset by losses for tax purposes to be limited to 50%.

:: Inflation-linked increase in business rates capped at 2% and discount for shops, pubs and cafes increased by 50% to £1,500.

SAVINGS

:: Limit on saving in New ISAs to rise to £15,240

DEVOLUTION & 'NORTHERN POWERHOUSE'

:: Business rates for Wales to be devolved to Welsh Government.

:: Plans law to devolve corporation tax to Northern Ireland if the Northern Ireland executive shows it can manage the financial implications.

:: Investment of £250m in new advanced material science institute in Manchester with branches in Leeds, Sheffield and Liverpool. Tendering for new franchises for Northern Rail and Trans-Pennine Express to ensure modern trains.

EDUCATION

:: Government-backed student loans of up to £10,000 are to be made available for postgraduates.

TRAVEL

:: Air Passenger Duty for under-12s abolished from May 2015. Scrapped from 2016 for under-16s.

SAVINGS

:: A further £10bn of Whitehall efficiencies is planned while £5bn more is sought from crackdown on tax evasion and avoidance.

:: Public service pension reforms will be completed, saving £1.3bn annually.

SPENDING

:: NHS gets additional £2bn every year for frontline services. A £1.2bn investment in GP services will be paid for from foreign exchange fines.

:: Government spending £10bn less than forecast this year but warns the coming years will require "very substantial savings in public spending."

PUBLIC FINANCES

:: Office for Budget Responsibility (OBR): Forecast 2014 GDP growth upgraded to 3% from 2.7%. 2015 forecast raised to 2.4%.

:: "Deficit is falling this year and every year." Deficit now cut in half. OBR forecasts borrowing to fall from £97.5bn in 2013/14 to  £91.3bn in 2014/15 (£5bn above annual target). Budget surplus of £23bn predicted for 2019/20.

:: Osborne says deficit reduction better than some predicted as welfare spending is lower and interest paid on national debt is considerably lower.

:: OBR predicts wage growth above inflation for the next five years.


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