Autumn statement published
An updated forecast of the UK's economy was published yesterday (December 3). In response, Chancellor George Osbourne announced a number of tax measures.
Some of these included:
- Restriction of corporation tax relief for goodwill. From December 3, an anti-avoidance measure was introduced to restrict corporation tax relief when a company acquires goodwill and certain other intangible assets that have been generated internally.
- From April 2016, employer National Insurance contributions up to the upper earnings limit for apprentices under the age of 25 will be abolished.
- Reform of stamp duty land tax (SDLT) on residential property. From today (December 4), each new SDLT rate is only payable on the portion of property value falling within each band.
- Changes to the starting rate of tax for savings income. From April 6, 2015, the maximum amount of savings income that will qualify for the starting rate of tax will rise from £2,880 to £5,000.
- Greater flexibility in access to pensions. From April 2015, those with money purchase pension funds will have free access to their pensions from the age of 55. It is proposed this will be achieved by allocating funds to a flexi-access drawdown account, from which any amount of money can be taken over any period of time. Alternatively, a single or series of lump sums can be withdrawn from the fund.
Draft legislation on many of these changes will be published on December 10.
A full summary of the changes is available from Ballams Chartered Accountants.
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