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| Q&A: How will the Autumn Statement affect you? | Q&A: How will the Autumn Statement affect you? |
| (34 minutes later) | |
| The Chancellor, George Osborne, has delivered the coalition government's latest plans for taxing and spending, in his annual Autumn Statement. | The Chancellor, George Osborne, has delivered the coalition government's latest plans for taxing and spending, in his annual Autumn Statement. |
| In reality, it is a mini-Budget. | In reality, it is a mini-Budget. |
| So, what does it mean for the pound in your pocket? | So, what does it mean for the pound in your pocket? |
| What's happened to taxes? | What's happened to taxes? |
| Many lower paid workers will find themselves paying less income tax. | Many lower paid workers will find themselves paying less income tax. |
| The personal allowance, the amount that most people can earn before they pay income tax, will rise to £9,440 in April 2013. | The personal allowance, the amount that most people can earn before they pay income tax, will rise to £9,440 in April 2013. |
| That will be a rise of £235 more than the chancellor had previously said, and will represent a total rise in the allowance since April 2012 of £1,335. | |
| Meanwhile, people whose incomes put them on the border of the higher-rate 40% income tax bracket will benefit a bit. | Meanwhile, people whose incomes put them on the border of the higher-rate 40% income tax bracket will benefit a bit. |
| The threshold for the 40% rate will rise by 1% in 2014 and again in 2015, from £41,450 to £41,865, and then to £42,285. | The threshold for the 40% rate will rise by 1% in 2014 and again in 2015, from £41,450 to £41,865, and then to £42,285. |
| Investors will also see some benefit, with the annual exempt amount for capital gains tax rising by 1% to £11,100. | Investors will also see some benefit, with the annual exempt amount for capital gains tax rising by 1% to £11,100. |
| The inheritance tax nil-rate band will rise from £325,000 to £329,000 in 2015-16. | The inheritance tax nil-rate band will rise from £325,000 to £329,000 in 2015-16. |
| How will my benefits change in April? | How will my benefits change in April? |
| Millions of people claim state benefits of one sort or another, and many working age benefits will rise by 1% in April. | Millions of people claim state benefits of one sort or another, and many working age benefits will rise by 1% in April. |
| That is probably going to be a cut in real terms though, as it is below the current level of inflation, which is 2.7% under the Consumer Prices Index (CPI) measure. | That is probably going to be a cut in real terms though, as it is below the current level of inflation, which is 2.7% under the Consumer Prices Index (CPI) measure. |
| It is also below the September CPI level of 2.2% which is often used as the benchmark for the uprating of benefits. | It is also below the September CPI level of 2.2% which is often used as the benchmark for the uprating of benefits. |
| Benefits such as Jobseeker's Allowance, employment and support allowance, and income support will rise by 1% for the next three years. | Benefits such as Jobseeker's Allowance, employment and support allowance, and income support will rise by 1% for the next three years. |
| That will mean the £71 jobseekers' allowance is likely to rise by 71p, rather than £1.56 next year. | That will mean the £71 jobseekers' allowance is likely to rise by 71p, rather than £1.56 next year. |
| Meanwhile child benefit will rise by 1% for the two years from April 2014 - it is frozen until then. | Meanwhile child benefit will rise by 1% for the two years from April 2014 - it is frozen until then. |
| Anything for savers? | Anything for savers? |
| Yes. The overall annual Isa contribution limit will rise modestly from the current level of £11,280 to £11,520 from April 2013, a rise of 2.1%. | Yes. The overall annual Isa contribution limit will rise modestly from the current level of £11,280 to £11,520 from April 2013, a rise of 2.1%. |
| The chancellor had previously said this would be increased in line with inflation. | The chancellor had previously said this would be increased in line with inflation. |
| What about pensions? | What about pensions? |
| The basic state pension will rise by 2.5% next year to £110.15 a week. | The basic state pension will rise by 2.5% next year to £110.15 a week. |
| Meanwhile, the two main limits on tax relief for pension saving are being reduced, again, although this will mainly affect the top 1% of pension savers. | Meanwhile, the two main limits on tax relief for pension saving are being reduced, again, although this will mainly affect the top 1% of pension savers. |
| From 2014-15, the lifetime allowance for tax-free pension saving will be cut from £1.5m to £1.25m, and the annual allowance will be cut from £50,000 a year to 40,000. | From 2014-15, the lifetime allowance for tax-free pension saving will be cut from £1.5m to £1.25m, and the annual allowance will be cut from £50,000 a year to 40,000. |
| Savings made above these limits will, as now, be taxed. | Savings made above these limits will, as now, be taxed. |
| The chancellor said by 2016-17 this would recover about £1bn of the tax relief currently given away to people saving in pension schemes. | The chancellor said by 2016-17 this would recover about £1bn of the tax relief currently given away to people saving in pension schemes. |
| And drivers? | And drivers? |
| The chancellor drew cheers from his colleagues when he simply decided to do away with a scheduled rise in tax on petrol. | The chancellor drew cheers from his colleagues when he simply decided to do away with a scheduled rise in tax on petrol. |
| The planned 3p per litre rise in fuel duty, which was due to be introduced next month, has been cancelled. | The planned 3p per litre rise in fuel duty, which was due to be introduced next month, has been cancelled. |
| What is your reaction to the Autumn Statement? Do you have any questions about it? Please send in your questions and comments using the form below. | What is your reaction to the Autumn Statement? Do you have any questions about it? Please send in your questions and comments using the form below. |