10th December 2013
Scottish Widows: 2013 Autumn Statement
Recently the Chancellor presented his 2013 Autumn Statement. Our Financial Planning team has prepared a detailed summary, highlighting key impacts for you and your clients.
The key impact areas are shown below.
- 'Individual Protection' will go ahead, as will reductions in the pension lifetime and annual allowances, in April 2014.
- Current pensioners, and those who reach State Pension age before the introduction of the new single tier pension in April 2016, will be allowed to top up their Additional State Pension record through a new class of voluntary National Insurance contributions.
- The State Pension Age will rise to 68 from the mid 2030s and 69 from the late 2040s.
- The annual ISA subscription limit increases to £11,880 (£5,940 for cash ISAs) for 2014/2015 and the Junior ISA subscription limit increases to £3,840.
- The personal allowance rises from £9,440 to £10,000 in April 2014.
- Married couples and civil partners will be able to transfer £1,000 of their income tax personal allowance to their spouse from April 2015 – worth up to £200 in 2015/2016 - provided neither spouse is a higher or additional rate taxpayer.
- The capital gains tax exemption increases from £10,900 to £11,000 in April 2014 and to £11,100 in April 2015.
- The capital gains tax private residence relief final period exemption for those with multiple homes will reduce from 36 months to 18 months from April 2014.
- The main rate of corporation tax will be cut to 20% from April 2015. It's already being cut from 23% to 21% in April 2014.
We’ll be in touch in the coming weeks with our in-depth analysis of the planning opportunities arising out of the key highlights.
If you have any questions about the Autumn Statement announcement please contact your account manager.
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