For Individuals

  • From 6th April 2013 income tax personal allowances will increased to £9,440 per year for those aged less than 65
  • The higher age related personal allowances (for those over 65) will not increase in 2013/14 AND it will now be restricted to people who where born before 6th April 1948
  • The threshold at which you pay 40% tax at will start to yoyo!  Currently the threshold is £42,475 however it will fall from 6th April 2013 to £41,450 and then rise in 2014 to £41,865 and then again to £42,285 in 2015
  • The 50% band, which currently applies to income in excess of £150,000 with fall to 45% from next year
  • Inheritance tax threshold will remain at £325,000 meantime but will rise to £329,000 in 2015/16
  • No announcement was made concerning Capital Gains Exemption for 2013/14.  It is currently at £10,600 and it has been announced to increase this to £11,000 in 2014/15 and then to £11,100 by 2015/16
  • The planned increase in fuel duty of 3p per litre has been scrapped!

For Pensions

  • The lifetime relief allowance will fall to £1.25m in 2014/15 with the annual tax-free allowance reduction to £40,000.  However this is likely to affect only the wealthiest of us as the average annual contribution is around £6,000 per annum

  • The basic state pension is to rise by 2.5% to £110.15 per week next year

For Savings

  • The overall ISA limit is to increase to £11,520 from April 2013
  • The Government is to consider allowing investment in SME equity markets (AIM listed shares).  However they have not allowed 100% of the allowance to be held in cash ISA, retaining the current limit at £5,76

 

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