On 5th December we heard the latest Autumn Budget Statement by George Osbourne. On the whole the Chancellor of the Exchequer gave a relatively optimistic assessment of the UK economy, together with a reiteration of earlier proclamations and a sprinkling of new announcements.
Although the UK economy appears to be recovering more rapidly than expected and Government borrowing has fallen “significantly more than forecast”, there is still a vast debt burden. Hence the austerity measures will continue.
As previously announced, the Government will be introducing a tax incentive for marriage with couples able to share £1000 of personal tax allowances under certain circumstances. The Chancellor also announced various increases to allowances such as an individual’s capital gains tax allowance and ISA limits, as well as increases to benefits and existing State Pensions
In terms of the ‘new’ elements there were a few items worth highlighting;
-
For those who are renting out a property in which they previously lived, there is a big reduction in the period for which you can claim exemption from Capital Gains Tax. Currently up to three years, it will be reduced to a maximum of 18 months.
-
For those yet to draw their State Pension there was confirmation that the State Pension Age will be deferred yet again. Also there is a clear intention to further review the age in line with life expectancy. As this increases so will the State Pension Age.
-
Staying on the subject of the State Pension, the Chancellor also made mention of his goal to allow existing pensioners to make up contributions to the system to ensure they’re drawing the maximum pension.
-
For employers, there was more positive news. There will be a clear incentive to recruit staff under age 21 as these employees will be free from Employers National Insurance Contributions.
The changes will affect most people in some way. If you have any concerns or would like to discuss things further please do not hesitate to contact us at Platinum.