Posted by Nick Day on 09 Dec 2013

Osborne Delivers UK Autumn Statement

The Chancellor, George Osborne, delivered his Autumn Statement on Thursday 5 December.

The main highlights are as follows:

  • From 6 April 2015 onwards, capital gains made by non-residents on the sale of residential UK property will be liable to UK capital gains tax (CGT).  This changes the principle that has been in place historically whereby non-residents do not pay tax on UK residential property (unless caught by the special temporary non-resident rules).  Details are sketchy but the phrase “future gains” is used which may suggest there may be some sort of re-basing for those who are already non-resident.
  • The capital gains rules on the sale of Principal Private Residences (PPRs) will also alter.  Currently, PPRs are exempt from CGT to the extent that they are occupied and if occupied as a PPR at any point, the last three years of ownership are counted as if occupied, even when not occupied.  This three year period is being reduced to 18 months from 6 April 2014 onwards.
  • The Personal Allowance (tax-free amount for individuals) will rise to £10,000 from 6 April 2014.
  • The CGT annual exemption will be £11,000 for 2014-15 and £11,100 for 2015-16.
  • A transferable “Married Couple’s Allowance” of £1,000 per couple per year will be introduced from 6 April 2015 (providing neither partner is a higher/additional rate taxpayer).
  • The September 2014 fuel duty increase of 1.61 pence per litre has been scrapped.
  • Further anti-avoidance measures will be introduced for the taxation of partnerships.
  • Employers will no longer pay Class 1 National Insurance Contributions on earnings of up to £42,285 per year paid to employees under 21 years of age, from 6 April 2015.
  • The RPI increase in business rates will be capped at 2% for one year from April 2014.
  • The main rate of Corporation Tax will be cut to 20% from April 2015.

This is a summary of the main highlights but if you have any questions please contact us for advice.

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