2012 Autumn Statement/Finance Bill 2013 at-a-glance

Highlights

• Business taxation
• Personal tax summary
• Finance Bill 2013 announcements
• Tax tables and government notices
• Live coverage and reaction

Business taxation

• Chancellor plays to the business audience
  - Annual investment allowance (AIA) increased tenfold to £250,000 for two years from 1 January 2013
  - Main corporation tax rate 1% to 21% in 2014-15. Small companies rate will remain at 20%
  - Simplified cash-based accounting for tax to be introduced in 2013
  - 3.02p per litre fuel duty increase due to take effect on 1 January 2013 scrapped
  - £1bn extra committed to infrastrucutre investment, including high-speed broadband in 12 cities.
• Chancellor ditches 'controlling persons' proposals
• Avoidance measures take immediate effect
• £1bn funding confirmed for new Business Bank

Personal tax summary

• Weathly pension savers targeted with £10k reduction in annual allowance for tax to £40,000 in 2014-15
• Lifetime allowance for tax relief on pensions savings will be reduced from £1.5m to £1.25m.
• Personal allowances raised an extra £235 to £9,440 in 2013-14
• basic rate limit will be set at £32,010
• Higher rate threshold increases will be capped at 1% in 2014-15 and 2015-16
• Phasing out of age-related allowances confirmed
• Child Benefit rates will be frozen in 2013-14 and will increase by just 1% in the two following years.

Finance Bill 2013 announcements (draft clauses published 11 December 2012)

• Changes to capital allowances - also see Ray Chidell's analysis of transitional treatments
• Cash-based tax accounts kick off in 2013
• Tax breaks for creative industries in 2013
• Personal tax: Unlimited reliefs capped
• Government publishes draft GAAR legislation
• Changes to RTI penalty regime
• HMRC will get to withdraw SA notices to file
• REITs and 15% stamp duty on £2m homes confirmed

Tax tables and government notices

• Tax tables 2013-14 (based on HMRC summary PDF and web pages)
• HMRC 2012 Autumn Statement page
• HM Treasury pages - Autumn Statement text and chancellor's speech
• Office of Budget Responsibility economic and fiscal outlook, Dec 2012

Commentary and reactions

• As it happened: Live Autumn Statement blog
• HMRC dodges cuts to beef up avoidance fight
• Economic growth forecasts slashed
• Editor's blog: The Autumn Statement as political theatre
• Practitioner's Diary: George, I'm not convinced
• Rebecca Benneyworth's guide to the Autumn Statement and Finance Bill 2013, sponsored by CPAA.