Autumn Statement 2014 – as it happened

The economy

  • “Warning lights are flashing over the global economy”

  • Deficit forecast to fall this year and every year

  • Budget to move into surplus in 2018/19

  • The economy has grown by 8% over this parliament

  • Growth is expected at 2.4% next year and then 2.2%, 2.4%, 2.3%, 2.3% ongoing

  • Manufacturing is growing faster than any other sector

  • 1,000 new jobs for every day the government has been in office

  • Employment growing fastest in Scotland and the North of England


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Spending decisions

 

  • Increased NHS spending

  • Unemployment benefits ended for migrants with no prospect of work

  • Building a ‘Northern powerhouse’ by road and rail improvements


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Business taxation

 

  • R&D – improvements for both the SME and large company schemes

  • New children’s television tax relief

  • Talks on devolving corporation tax powers to Northern Ireland

  • Banks to lose 50% of tax relief for losses from the financial crisis

  • Reduction in North Sea supplementary charge, and increased reliefs

  • Small business rate relief extended

  • Review of structure of business rates

  • Business rates to be devolved to Wales


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Employee taxation

 

  • National insurance employment allowance extended to carers


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Taxation of individuals

 

  • A modest giveaway on the personal allowance – this will increase next year to £10,600 – an additional £100

  • Increase in higher rate threshold to £42,385 from April. Down-payment on increase to £50,000 in next parliament

  • £50k remittance based charge for non-doms in UK for 12 of the last 14 years increased to £60k; £90k after 17 years in UK out of last 20 years

  • Tax-free status of ISAs will continue after death for spouse – echoes the changes being introduced for pensions on death


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Value added tax

 

  • VAT relief for hospices


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Stamp duty land tax (SDLT)

 

  • Slab system for SDLT abolished for residential properties in favour of ‘slice’ system; highest value properties will be subject to 12% charge

  • Stamp duty reduced for 98% of residential sales


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Tax avoidance

 

  • 25% tax on profits shifted out of the UK by multinationals

  • Various detailed anti-avoidance measures – including entrepreneurs relief

  • Action on hybrids and country-by-country reporting is early adoption of measures recommended in OECD’s plan on BEPS


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Other taxes

 

  • Inheritance tax exemption for aid workers who die in line of duty

  • ATED increased for houses above £2 million

  • Fuel duty frozen

  • Air passenger duty abolished for children under 12 (under 16 in future)


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Click here to read the full summary.
 

Contacts

Business tax team
Private client tax team

Related links

Business tax
Private client tax
Autumn Statement full summary