The Autumn Statement is one of the two economic focused announcements issued that affect any and everyone in the United Kingdom. A key proponent in the plans of the British government, the Autumn Statement will have a direct impact on the way the members of the public live their lives and should never be taken lightly. By the end of 2014 the 32nd official Autumn Statement had been issued, but how did the 32nd annual Autumn Statement affect you?
The aftermath of the 2014 Autumn Statement become evident very quickly, as it was undoubtedly a victory for homebuyers. Under the old system stamp duty was collected as a percentage of the final sale value of a property. However, the 2014 Autumn Statement changed this and what surprised most was that the changes would take place immediately from December 2014. The new system put the power back into the hands of homebuyers. The new system acts in a similar way to the council tax setup, as the rates are focused around property value and final sale price. The stamp duty rates issued in the Autumn Statement are as follows:
- 0% on properties £125,000 or less.
- 2% on properties valued between £125,000 and £250,000
- 5% on properties valued between £250,00 and £925,000
- 10% on properties valued between £925,000 and £1.5 million
- 12% on properties priced over £1.5 million
The new stamp duty also had a proviso included for those who had already exchanged contracts, as they were allowed to choose under which stamp duty regime they were charged.
When the Conservative party first came into power, Chancellor George Osborne stated that his ultimate goal was to make anyone earning less that £12,500 not pay income tax. It was a tall order to say the very least and history has proved that it may have been too much. That isn’t to say that the Autumn Statement hasn’t changed the face of income tax, because it has. The Chancellor raised the personal allowance to £10,600, with the new conditions set to come into force in April 2015. The 40% income tax threshold was also raised to £42,385.
Notoriously savers have had a rough time during previous Autumn Statement’s past. By the end of 2014 the Autumn Statement proved that there had been a changing of the ways. A higher tax limit was introduced for tax-free ISAs, as the total has been raised to £15,240. Changes were made to how an ISA’s tax-free status is handled after someone passes; as it was declared that the tax-free status will remain with the inheriting individual.
Other news from the Autumn Statement included a reduction in cost of the child’s air passenger duty. Airlines were also told to start listing flight charges both individually and independently to passengers from now on. Drivers also reaped the benefits of a freeze in fuel duty. The Autumn Statement was noteworthy to say the least, with the benefits of it set to be felt well into the future.
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Alexander Bowring is a London based writer and a Southampton Solent University Screenwriting graduate. He has worked alongside TV personality and Telegraph feature writer Alison Cork, whilst also having produced content for ITV, This Morning, Canvas8, Who’s Jack, Alison at Home, and Bonallack & Bishop Solicitors. Alexander also has a keen interest in investments.