Highlights from the Autumn pre-budget report
- The Government reafirmed it's intention to increase personal income tax allowance to £10,000 by 2015. The personal allowance will be increased to £9,440 for the year 2013-14
- In 2013/2014 the entry point for 40% income will be lowered to £32,010 thus negating any benefit from the increased personal allowance for higher rate tax payers
- The capital allowances annual investment allowance will increase from £25,000 to £250,000 per annum for two years from 1 January 2013. This allowance allows qualifying businesses to get an immediate tax deduction for the full cost of qualifying plan and machinery
- From April 2013 there will be a simper income tax scheme for small unincorporated businesses. Self employed individuals and partnerships with a turnover of less than £77,000 will be abLe to calculate their profits on a cash basis and not distinguish between revenue and capital expenditure
- From April 2013 the main rate of corporation tax will be reducted to 23% and then 21% from April 2014
- Inheritance tax remains unchanged, forzen at £325,000 until April 2015. This is expected to increase 1% in April 2016 to £329,000