By Lyndsey Hall
Tomorrow the Autumn Statement 2013 will be announced by Chancellor of the Exchequer George Osborne. Here are some of the top predictions for the annual review:
- Business Rates
Osborne is expected to limit the increase to 2% in England and Wales next year, rather than linking the rate to inflation. It is also being suggested that a scheme offering small businesses rate relief will be set up.
- Personal Allowance/ Higher-Rate Threshold
Although tax rates are expected to remain the same, it is possible Osborne could amend personal allowances and the higher-rate threshold at which 40% tax kicks in.
It has been hinted at that ISAs could be subject to an overall lifetime cap of £500k, or even as little as £100k, beyond which any assets would become taxable, mirroring the cap that has already been applied to pensions.
Osborne has already put in motion plans to apply two pincers to reduce pension tax relief for the very wealthy. From April 2014, the lifetime pension cap, above which any assets are taxable, will drop from £1.5m to £1.25m.The maximum annual contribution made by any individual in a single tax year will also drop from £50k to £40k.
- Property Tax
It has been predicted that Osborne will apply capital gains tax to profits made by non-UK residents on property in Britain, aligning the UK with most other countries on this policy.
These are just 5 of the top predictions for tomorrow’s Autumn Statement, other measures could involve inheritance tax, tax breaks for married couples, child trust fund savings and energy bills.
Do you agree with our top predictions? What other measures do you predict the Chancellor addressing in tomorrow’s review?