Autumn Statement Tax Summary

There were few surprises in the announcements made on 29 November. We have listed below a few of the more topical issues:

  • Small Business Rate Relief to be extended for a further six months from 1 October 2011.
  • Public transport in London and regulated rail fares will benefit from a reduction in fare increases next year. From 1 January 2012 fares will increase by 6.2% not the expected 8.2%.
  • The expected increase of 3.02p per litre in the cost of fuel due 1 January 2012 is deferred to 1 August 2012. The further rise due in August is scrapped.
  • Bank Levy to be increased to 0.88
  • A new relief announced that will extend the Enterprise Investment Scheme to small, new business start-ups. To be called the Seed Enterprise Investment Scheme. 50% tax relief for individuals investing and the offer of a capital gains tax holiday.
  • Capital gains tax annual exemption frozen for 2012-13 at £10,600.
  • New 100% Capital Allowance for firms trading in six assisted areas: the Black Country, Humber, Liverpool, North East, Sheffield and Tees Valley.
  • State Pension increases confirmed from April 2012:  the full basic pension will rise by £5.30 to £107.45 per week; the full couple rate where entitlement is based on their spouse’s or civil partner’s pension will rise by £8.50 to £171.85 per week.
  • State Pension age to rise to age 67 in 2026.
  • From the end of the current pay freeze, average public sector pay increases will be limited to 1% for a further two years.


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