Chancellor George Osborne delivered his Autumn Statement to Parliament on Tuesday 29th November. Since the March budget a number of consultation papers and discussion documents have been published by HMRC. Draft legislation relating to many of these areas will be published on 6th December 2011. Here are some of the proposals:
Personal Tax for 2012/13
The personal tax allowance for those aged under 65 will be increased by £630 to £8,105. This is greater than the minimum required and is part of the plan of the coalition government to ultimately raise the allowance to £10,000.
The personal allowance is reduced by £1 for every £2 of adjusted net income over £100,000. Next year the allowance ceases at adjusted net income in excess of £116,210.
Tax bands and rates for 2012/13
The basic rate of tax is currently 20%. The taxable pay band at this rate will be reduced to £34,370 so that the threshold at which the 40% band applies will remain at £42,475. The 50% band currently applies where taxable income exceeds £150,000.
Tax Credits 2012/13
The child element of Child Tax Credit will rise by £135 per year which is in line with the inflation increase but the additional increase above inflation of £110 which was planned has been dropped.
State Pension 2012/13