Chancellor’s Budget – autumn statement
The Chancellor delivered his autumn statement on 3rd December 2014 and here are the key points announced:
- Employer National Insurance will be abolished for apprentices aged under 25 earning less than the Upper Earnings Limit.
- From 4th December 2014 Stamp Duty Land Tax will only apply to the part of the property price that falls within each band.
- From April 2015 the income tax personal allowance will further be increased to £10,600 and the higher rate threshold will be increased to £42,385.
- The doubling of the Small Business Rate Relief will be extended until April 2016 and the business rates discount of £1,000 for some businesses will be increased to £1,500 from April 2015.
- From April 2015 the £2,000 Employment Allowance will be extended to households that employ care or support workers.
- From 3rd December 2014, on an individual’s death, the surviving spouse or civil partner will inherit the ISA tax advantages. From April 2015 the ISA allowance will increase to £15,240 and the Junior ISA and Child Trust Fund allowance will both increase to £4,080.
- From April 2015 there is to be further tax efficient transfers of pension savings on death for annuities as well as for pension funds.
- The Research and Development enhanced expenditure rate for Small and Medium Enterprises will increase from 225% to 230% from 1st April 2015.
- From 3rd December 2014 Entrepreneurs Relief will be unavailable on incorporation, where a business is transferred to a related close company.
- The non-domicile remittance charges will be increased to £60,000 for those resident 12 out of the last 14 years, and a new charge of £90,000 will be introduced for those resident 17 out of the last 20 years. There will be consultation as to whether to apply the charge for a minimum of 3 years.
- From 1st May 2015 under 12s will be exempted from Air Passenger Duty when travelling economy, and for the under 16s from 1st March 2016.