Autumn Statement – how will it affect you?

Chancellor George Osborne unveiled a number of significant  measures affecting both individuals and businesses in his 2012 Autumn  Statement:

Individuals

An additional increase in the basic personal allowance from  next April will mean that basic rate taxpayers can earn £9,440 before paying  any income tax.  Higher rate taxpayers will see an increase in the  threshold for the 40% rate of 1% in 2014, followed by a further 1% increase, raising  the threshold from its current level of £41,450 to £42,285 by 2015.

The capital gains tax annual exempt amount will also rise by  1% a year to reach £11,100, and the inheritance tax nil-rate band will increase from  £325,000 to £329,000 in 2015.

Business measures

The Chancellor included some headline measures  for businesses, including the announcement that corporation tax will fall by an  additional 1% from 2014, to reach 21%.

The Chancellor also unveiled measures aimed at boosting  infrastructure, investment and exports.

Capital allowances on plant and machinery will rise from  £25,000 to £250,000, with effect from January.

Small businesses will see the doubling of the Small Business  Rate Relief scheme extended for a further year, and a new Business Bank will  receive £1 billion of capital in a bid to boost funding for small firms.

Finally…

The previously planned 3p a litre  rise in fuel duty, which had been postponed until January, has now been  dropped

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