Wolfshade
12-05-2013, 03:46 AM
Firstly, what is it?
It is the second of two economic statements that the Chancellor gives (the other being The Budget).
The Chancellor will update the government on all matters to do with finance, so tax and spending. It also incorporates the Office for Budget Responsibility's (independent body) projections.
So what do we know?
Income Tax
The personal allowance will rise to £10,000 from April 2014, that is the amount of money you can earn tax free. It will then increase by the Consumer Price Index (CPI, an inflation measure) thereafter.
40% tax rate will apply to earnings above £41,866, this will then rise by 1% thereafter.
Married & Civil Partner Tax Break
Annouced at the Tory conference is set to cost £700m. Under the plans £1,000 of personal allowance could be transferred from one spouse to another, assuming neither is a higher rate taxpayer and one is earning less than the personal allowance. This could equate to a saving of up to £200. Though this still requires to go through a Commons vote.
Benefits
Ah the hot potato. These will rise by 1% for the next three years from April 2014 for a range of allowances. The benefits for disabled people and carers will increase in line with the cost of living (CPI).
Free School Meals
From the LibDem's Conference, all infant state school pupils will be given free school lunches from September (costing around £600m).
Pensions
The single largest expenditure of the government, outstripping benefits by some margin, but the sacred cow no one will touch. From April 2014 there will be a rise of 2.7% (the current CPI rate). This goes from £110.15 to £113.10 per week.
The maximums size a lifetime pension pot that can be accrued in a tax-advantaged scheme drops from £1.5m to £1.25m, also the annual allowance decreases from £50,000 to £40,000.
Savings
The Tax-Free ISA rate is set to rise from £11,520 to £11,880.
Fuel Duty
This again is cancelled, with the next schedled rise in September 2014, if that too doesn't get cancelled.
Alcohol Tax
Expected 2% rise for wines and spirits. Though Beer (Huzzah!) should be unaffected.
Energy
Changes to the green levies should (if these are passed on to customers) see an average reduction of £50 from the average dual-fuel bill.
As always we won't know anything concrete until it is announced from 11:15
It is the second of two economic statements that the Chancellor gives (the other being The Budget).
The Chancellor will update the government on all matters to do with finance, so tax and spending. It also incorporates the Office for Budget Responsibility's (independent body) projections.
So what do we know?
Income Tax
The personal allowance will rise to £10,000 from April 2014, that is the amount of money you can earn tax free. It will then increase by the Consumer Price Index (CPI, an inflation measure) thereafter.
40% tax rate will apply to earnings above £41,866, this will then rise by 1% thereafter.
Married & Civil Partner Tax Break
Annouced at the Tory conference is set to cost £700m. Under the plans £1,000 of personal allowance could be transferred from one spouse to another, assuming neither is a higher rate taxpayer and one is earning less than the personal allowance. This could equate to a saving of up to £200. Though this still requires to go through a Commons vote.
Benefits
Ah the hot potato. These will rise by 1% for the next three years from April 2014 for a range of allowances. The benefits for disabled people and carers will increase in line with the cost of living (CPI).
Free School Meals
From the LibDem's Conference, all infant state school pupils will be given free school lunches from September (costing around £600m).
Pensions
The single largest expenditure of the government, outstripping benefits by some margin, but the sacred cow no one will touch. From April 2014 there will be a rise of 2.7% (the current CPI rate). This goes from £110.15 to £113.10 per week.
The maximums size a lifetime pension pot that can be accrued in a tax-advantaged scheme drops from £1.5m to £1.25m, also the annual allowance decreases from £50,000 to £40,000.
Savings
The Tax-Free ISA rate is set to rise from £11,520 to £11,880.
Fuel Duty
This again is cancelled, with the next schedled rise in September 2014, if that too doesn't get cancelled.
Alcohol Tax
Expected 2% rise for wines and spirits. Though Beer (Huzzah!) should be unaffected.
Energy
Changes to the green levies should (if these are passed on to customers) see an average reduction of £50 from the average dual-fuel bill.
As always we won't know anything concrete until it is announced from 11:15