Autumn Statement News

I've trawled the news and reckon I have a great idea for a new business, making the best from today's announcements. It's at the end of this post.

 

For now, onto the financial planning stuff:

 

NISAs now outside Inheritance Tax

Super piece of Autumn Statement news today. ISAs (now actually called NISAs) will be tax free on inheritance from a spouse. An excellent piece of common sense policy making.

George Osborne said: “From today…when someone dies, their husband or wife will be able to inherit their ISA and keep its tax-free status.”

The Treasury estimates that 150,000 married ISA savers pass away each year, meaning their ISA tax break dies with them.

From today, if an ISA saver in a marriage or civil partnership dies, their spouse or civil partner will be able to transfer the ISA 'wrapper' and keep the ISA tax advantages.

DEC 8 ADDITION TO THIS POST. MORE DETAIL: http://greenfinancial.blogspot.co.uk/2014/12/isa-iht-good-but-not-great.html
 

Another sensible update is that surviving spouses will be able to invest as much into their own ISA as their spouse used to have, on top of their usual allowance from 6 April 2015.

The ISA allowance will rise to £15,240 which for monthly savers is a new maximum of £1,270

Pension death tax Cut confirmed

Previously announced as an aim, it was confirmed the cut to the 55% the death tax on pensions will happen.

Changes to starting rate of higher rate tax

The higher rate tax threshold will increase to £42,385 (from £41,865) as the personal allowance will rise to £10,600 next year (£100 more than had been previously announced).

Changes to starting rate of savings tax

Those earning under £15,600 need pay no tax on any of their savings income.

Stamp Duty

A big change ahead, with the Chancellor announcing reforms to stamp duty to “make it fairer”. He described the current system as one of the country's 'worst designed and most damaging of all taxes'.

The residential so called 'slab' system (I've also heard it called cliff-edge) will be replaced by tax bands, which will come into effect from midnight tonight.

There will be no tax paid on the first £125,000,

2% on the amount above that up to £250,000

then 5% on the next amount up to £925,000

and then 10% on amounts above that up to £1.5 million

then 12% on everything above that.

The ‘slab’ system meant that someone buying a house worth over £250,000 would pay 3% of the whole price of the property, rather than 3% of the amount over £250,000

For better: Under the new system, buying a house worth £275,000 would mean paying £4,500 less than under the old system.

For worse: However a property worth £5 million would see its tax increase from £350,000 to £514,000.

Currently stamp duty starts at 1% on houses worth between £125,000 and £250,000, rising to 3% above £500,000 and 4% for a home worth up to £1 million.

And finally... I note there will be a new tax credit for children's TV producers and also a £45m package of support for exporters

So I’m delighted to announce crowdfunding is available for my new business, exporting children's TV producers

Thur 4 Dec Update
More posted here: http://greenfinancial.blogspot.co.uk/2014/12/autumn-statement-little-more-detail.html
Final Finance Bill blog will be posted when available.