Key Points Autumn Statement 2014

Growth

GDP growth forecast for 2014 to 3.0% from 2.7%., 2015 to 2.4% from 2.3%.

Government Borrowing

2014/15 borrowing forecast is revised down to £91.3bn.

Inflation

Inflation predicted to be 1.5% in 2014, falling to 1.2% in 2015

Housing
Stamp Duty changes effective midnight.

The changes will apply to residential properties completed on or after 4 December 2014. Where contracts have been exchanged on or before 3 December 2014, and the transaction is completed on 4 December or later, you can choose whether to use the old or the new rules.

Purchase price of property Rate
Up to £125,000 Zero
Over £125,000 to £250,000 2%
Over £250,000 to £925,000 5%
Over £925,000 to £1.5 million 10%
Over £1.5 million 12%

Savings

Limit on saving in New ISAs to rise to £15,240

Duties
Fuel Duty frozen

Air Passenger Duty for children under-12 would be abolished next year, and under-16s from the following year

Personal Taxation

The personal income tax allowance will rise to £10,600 for 2015/2016, previously £10,500

The higher rate threshold of 40% tax bracket increases to £42,385 for 2015/2016, previously £42,285

Inheritance tax waived for spouses on ISA’s

Corporation Tax
Known as the “Google Tax” -25% tax on profits generated by multi-nationals that are shifted out of the UK which is forecast to raise £1bn over five years.

Bank profits which can be offset by losses for tax purposes to be limited to 50%

Inflation-linked increase in business rates capped at 2% and discount for shops, pubs and cafes increased by 50% to £1,500.

avatar Name: Alexandra Eager
About: Alex has worked as a Financial Controller and Finance Director for many years for a variety of companies across a range of industries but more recently she has moved away from accounting working for an internet marketing agency as Finance and Operations director, primarily overseeing the finance functions and search engine optimisation (SEO) for clients. Follow Alex on G+ and on Twitter @Alex_BusDirUK
Alex runs her own company with two fellow owners developing a suite of e-commerce web sites and promoting them directly. “I found that SEO and finance were quite compatible both needing an eye for detail, research and analysis as well keeping up with new developments and changes.”

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