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.