A summary of measures announced today by the Chancellor in his Autumn statement.

Banks

  • A rise in the bank levy from 1 January 2012.
  • Asset backed pension scheme rule change tabled for 2012 to remove unintended double tax relief

Small Business

  • New business small term loan scheme: SME new loans and overdrafts interest capped to the rate paid paid by Government (subject to state aid approval).
  • Increase in R & D tax credits from 2013.
  • Enterprise Investment Scheme changes: from 1 April 2012 50% income tax relief will apply to investments of up to £100,000 as part of a new Seed Enterprise Investment Scheme (SEIS) subject to an invidual company cumulative investment limit of £150,000 (subject to State Aid approval).
  • Small Business Rates Relief extended until April 2013.

Capital Gains Tax

  • Investments made to the SEIS are exempted from CGT in 2012/13
  • There will be a freeze on the CGT annual exemption in 2012/13

Capital allowances

  • 100% capital allowances for investment in plant and machinery between April 2012 and March 2017 in the following new Enterprise Zones:
    • Black Country
    • Humber
    • North Eastern
    • Sheffield
    • Tees Valley
    • Liverpool

Personal

  • Increase in personal allowances.
  • Increase in child element of tax credit.
  • Railfares: government reduction in train fares.
  • Fuel duty increase from January 2012 cancelled.

Employment

  • New youth contract: private sector work experience, state assistance in apprenticeships.

Pensions

  • From 2026 entitlement to state pension increased from the age of 66 years to 67 years.

Public sector pay and pensions

  • Public sector pay: cap increases to 1%.

VAT

  • A costs sharing exemption may create a repayment opportunity for charities, universities and higher education colleges, housing associations.

Construction and infrastructure

  • New funding for schools and free-schools.
  • Re-start right to buy schemes.
  • Measures to boost construction sector, roads and rail.
  • Superfast broadband to 95% of country, with free WiFi in certain cities.

Note that:

Draft legislation for the 2012 Finance Bill will be published on 6 December 2012.

 

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