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


Spending decisions


  • Increased NHS spending

  • Unemployment benefits ended for migrants with no prospect of work

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


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


Employee taxation


  • National insurance employment allowance extended to carers


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


Value added tax


  • VAT relief for hospices


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


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


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)


Click here to read the full summary.


Business tax team
Private client tax team

Related links

Business tax
Private client tax
Autumn Statement full summary