The Autumn Statement: Tax & Pensions

The planned rise of the State Pension age to 67 is to be brought forward to 2026 from 2034, which is forecast to save £59 billion in the longer term.

The basic state pension will rise by £5.30 to £107.45 in April 2012, which will be the largest ever cash rise in the basic state pension.  To ensure the poorest pensioers did not see a smaller rise, the Government confirmed that they would uprate the pension credit by £5.35.

The government will introduce new legislation that takes effect on 29 November 2011 to prevent employers obtaining excessive tax relief for asset-backed pension contributions to their pension schemes, but instead accurately reflects the payments made.

The Government will target up to £20 billion of additional investment to support UK infrastructure following an agreement with two groups of UK pension funds.

The planned £110 above inflation increase to the child element of the Child Tax Credit will be scrapped and the Government will also not uprate the couple and lone parent elements of the Working Tax Credit in 2012-13.

The child element of the Child Tax Credit and the disability elements of the tax credits will be uprated in line with the Consumer Prices Index in 2012/13.

Annual exempt amount for capital gains tax will be frozen at £10,600 for 2012/13.

The main rate of corporation tax will reduce to 23 per cent, as planned, on 1 April 2012..

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