George Osborne announced a raft of new measures in his final Autumn Statement before the General Election.
So how did you do? Will you be better or worse off? Are you a winner or a loser?
We reveal all.
The big winners from the Autumn Statement will be the 98% of homebuyers who will be better off due to the changes to the Stamp Duty rules.
The new system will work on a tiered basis with the appropriate percentage of tax payable on each ‘slice’, rather than on the overall purchase price, which is currently the case.
More details can be found by clicking here.
The news that ISAs will keep their tax-free status, when passed on death to your spouse or civil partner, is unexpected and certainly welcome.
Pensioners will also be pleased to hear that the Government still plans to launch the new Pensioner Bonds in January. Although it was disappointing that the interest rates were not revealed, leading to fears they might not be as competitive as first thought.
People looking for a more innovative way to save, will be pleased to hear that the Chancellor plans to do more to encourage Peer to Peer lending; although again no details were announced.
Future widows and widowers
If the ISA announcement was a surprise, it wasn’t a shock to hear the Chancellor confirm that the lump sum paid from a pension on the death of a member, will no longer be taxed at a rate of 55%. On death before the age of 75, no tax will be payable, after this age tax will be paid by the beneficiaries at their marginal rate.
The Chancellor also announced new rules for Annuities, which will mean on death after the 6th April 2015, but before the age of 75, the income received by the widow or widower from a joint life Annuity will be tax-free forever.
The personal allowance, which is the amount of money you can earn before you pay tax, will rise to £10,600 from 6th April 2015.
At the same time the higher rate tax threshold will increase to £42,385, removing 130,000 people from the 40% tax band.
People who employ a carer
The employment allowance, which saves £2,000 in employer National Insurance contributions, will be extended to people who employ a carer.
Families who like overseas holidays
The Chancellor announced that next year air passenger duty for children under 12 will be abolished. In the following year it will be removed for all children below the age of 16.
The rate relief given to small businesses will rise from £1,000 to £1,500.
Meanwhile, all small businesses will welcome the announcement of a review in to how rates are calculated.
Older pension savers
The Government has scrapped plans to give tax-relief on pension contributions made by people over the age of 75.
Tax dodging corporations
The Chancellor announced a new 25% tax on companies which create profits in the UK but then artificially transfer them overseas to avoid paying tax.
The move will raise around £1 billion.
It was also announced that banks will no longer be able to offset current profits against losses made during the financial crisis.
Buyers of expensive homes
People buying homes worth more than £937,500 will be worse off under the new system.
Were you a winner or a loser?
We’d love to hear what you think about the Budget, were you a winner or a loser?
Why not leave us a comment below?
Feel free to call one of our IFAs today on 0115 933 8433, alternatively enquire online or email firstname.lastname@example.org