We have pleasure in attaching our summary of the key announcements in the Chancellor’s Autumn Statement 2014. We hope you will find it useful and interesting.
It was much more significant than most Autumn Statements have been in the past and reflects the fact that there is only one more such occasion before the May election. So George Osborne was clearly aiming to make a favourable impression.
The greatest impact will be on the housing market, which will immediately feel the beneficial effects of his lowering of stamp duty for the vast majority of home buyers.
The reform to ISA allowances, making them inheritable, at least between married couples and civil partners, echoes the upcoming and welcome changes to the taxation of pension death benefits.
There were many other important announcements which we cover in the summary.
Download Autumn Statement
Click on the image below to download Autumn Statement. You will require Adobe Reader or Chrome Browser to view the file.
Autumn Statement Highlights
The Autumn Statement looked very like a mini-Budget, with several major new provisions and a raft of other measures. The key points included the following:
- Residential stamp duty land tax (SDLT) has been restructured with effect from midnight on 3 December. Buyers will now pay a rate of duty on the portion of the purchase amount that falls within each band (like income tax).
- The rates and thresholds of SDLT have been adjusted accordingly: there is no tax on the first £125,000 of any residential property transaction, with the top rate at 12% on the slice of value above £1.5 million. Commercial SDLT rates remain unchanged.
- Spouses and civil partners will be able to inherit their deceased spouses’ or partners’ ISAs and ISA allowances for deaths from 3 December 2014.
- The tax treatment of pension annuity payments to dependants will be brought into line with the treatment of ‘flexi-access’ withdrawals. So, if an individual dies before the age of 75, their surviving beneficiary’s income will be tax free.
- Non-domiciled tax payers will have to pay more to be on the remittance basis of taxation. The government is consulting on making a remittance basis election apply for a minimum of three years.
- There are a very large number of anti-avoidance measures, including one to counter tax avoidance by multinational companies that earn profits in the UK but use avoidance techniques to divert these profits offshore. This diverted profits tax will be 25%, applied from 1 April 2015.
- Other measures include freezing fuel duty and the abolition of air passenger duty for
children under 12 from 1 May 2015 (and for under-16s a year later).
Any questions feel free to give us a call on 0121 231 7080 and ask to speak to Steve.