Heere are some of the main points from today’s UK Autumn Statement where information about the state of the UK economy is given and possible Budget plans for 2013 are given . (The UK Budget is not announced until April.) These changes will affect any of our readers in Northern Ireland. Maybe there are some tips or ideas in it for Ireland (Too late for today’s Budget though).
UK Autumn Statement Main Points
All government departmental budgets cut by 1% this year, and 2% next year. NHS and schools exempted.
Local government budgets cut by 2% in 2014.
Extra capital investment in infrastructure totalling £5bn over two years
Investment of £600m in science, £270m for further education colleges, and £1bn for schools.
Income Tax decreases : The 40% higher rate tax threshold will go up by 1% in 2014 and 2015 from £41,450 now to £41,865 and then £42,285.
Personal tax allowance to rise by £1,335 in 2013. That will take the personal allowance to £9,440. Extra rise will not be adjusted so will benefit higher rate taxpayers too.
From April 2014 main rate of corporation tax will drop 1% to 21%.
Three pence per litre fuel duty rise planned for January cancelled
Bank levy rate increased to 0.13% next year.
No new tax on property.
The capital gains tax annual exempt amount will increase by 1% in 2014 and 2015,
The inheritance tax nil-band rate will rise from £325,000 now to £329,000 in 2015-16.
Basic state pension to rise by 2.5% next year to £110.15 a week. (compared to current rate in Ireland of €219 Euro or £176.00)
Cut to tax relief on pensions. Lifetime allowance to drop from £1.5m to £1.25m. And the annual tax free limit will go down from £50,000 to £40,000.
Most working age benefits – including jobseekers’ allowance, employment and support allowance and income support – to be uprated by 1% for the next three years.
Child benefit to rise by 1% for two years from April 2014.