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The Autumn Statement – an overview

The Autumn Statement – an overview

Category: Money

Updated: 06/12/2013
First Published: 05/12/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Earlier today Chancellor George Osborne announced his plans for the economy in his annual Autumn Statement. Speculation was rife about the policies he would or wouldn't implement – would child trust fund (CTF) transfers be allowed? Will there be a lifetime ISA limit? What about fuel duty?

Well, now we know, and while some changes were welcomed there were other aspects that weren't so widely appreciated – and some expected improvements failed to materialise at all.

Here's a quick overview of the key financial points so you can see how it'll affect you and your money:

  • The annual ISA limit has increased in line with inflation. In the tax year 2014/15 the total amount that an individual can hold in an ISA will be £11,880, £600 more than the current tax year, with the amount either being held wholly in a stocks and shares ISA or split between that and a cash ISA (the cash ISA limit will be £5,940).
  • There'll be no lifetime limit on the amount that can be saved in ISAs (there were rumours that the Government would implement a cap of £100,000).
  • In a disappointing turn, transfers between CTFs and junior ISAs are still not allowed.
  • Peer-to-peer lending won't be included in the ISA allowance as previously expected.
  • The personal income tax allowance will rise to £10,000 from April 2014, and will increase according to inflation figures thereafter.
  • Transferable tax allowance for married couples and civil partners from 2015, allowing them to transfer up to £1,000 of their personal income tax allowance to their partner.
  • State pension age set to increase to 68 in the mid-2030s and to 69 by the mid-2040s – meaning those currently in their 30s won't get a state pension until they're 69.
  • In April 2014, state pension will rise by £2.95 per week.
  • More banks set to join the mortgage guarantee element of Help to Buy, including Aldermore and Virgin Money who will launch products sooner than planned.
  • Employer National Insurance contributions to be scrapped on millions of jobs for young people.
  • Fuel duty is scrapped and petrol taxes will stay frozen – a planned rise of 2p/litre won't materialise.
  • Business rates are to be capped at 2% rather than being linked to retail prices inflation, with some premises eligible for a discount.
  • Changes to the capital gains tax system, including making non-residents (and potentially expats) who sell property in the UK liable to pay tax.
  • There'll be a boost to the Government's start-up loans scheme to help fledgling businesses.

What Next?

Find a home for your 2013-14 cash ISA allowance

Looking for a tax-efficient investment opportunity for your 2013/14 ISA Allowance? Use our Stocks and Shares ISA comparison

Use a commercial mortgage to purchase or refinance just about any type of non-residential or business property

Compare the best business loans with our independent selection for small and medium-sized enterprises (SMEs)

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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