The Autumn statement has historically been the time when little is announced except confirming NI rates and benefits for the following year. In common with the Budget there is very little new material as so much has been announced in advance. There were a few unexpected changes, confirmation of a few rates and some announcement for later years:
Unexpected announcements
- If you are thinking of selling your principal private residence there was an allowance for CGT purposes that the last 36 months were always treated as tax free, due to alleged abuse this period is being reduced to 18 months
- The use of LLPs with corporate partners has become quite widespread as it offers a flexible yet tax efficient structure however the government has deemed this “aggressive tax planning” and has in effect banned the use of corporate partners with immediate effect by changing their tax treatment – see our blog here
- The percentage threshold scheme by which employers could reclaim part of their statutory sick pay will be abolished from 6 April 2014
New rates for next year:
- Personal allowance – this has been confirmed as £10,000 for 2014/15
- The employees and employers threshold for NI has finally been aligned at £153pw for 2014/15 – this means employers and employees start paying at the same time
- Taxable benefits for vans and van fuel rise to £3,090 and £581 respectively from 2014/15
- Company car fuel multiplier rises to £21,700 for 2014/15
For future years
- Employers NI will not be payable for employees under 21 who are paid less than £813pw from 2015/16
This article only provides some of the key changes and facts of interest and you should seek professional advice before taking any steps based on the contents. If you would like advice in this or other areas feel free to call. Alastair Wood, AW Accounting, Gravesend, Kent – Accountants who “speak your language”