Autumn Statement: Individual Announcements
Personal Tax Allowance
From April 2017, the Personal tax allowance will increase from £11,000 to £11,500. The amount you can earn at the basic rate of tax will also increase from £43,000 to £45,000.
By 2020-21 the personal allowance is expected to rise again to £12,500 and the higher rate tax threshold will rise to £50,000.
Salary Sacrifice Scheme To Be Taxed More Fairly
As of April 2017, most salary sacrifice schemes will be taxed as if they were cash income, except the following schemes:
- Pension payments & advice
- Cycle to work
- Ultra low emission cars.
If you’ve taken advantage of any Salary Sacrifice scheme before April 2017, it will be protected for one year.
Any schemes for cars, accommodation and school fees will also be protected, but for up to 4 years.
Reimbursing Employers For Benefits In Kind
New legislation will allow employees to reimburse their employers for benefits provided, and thereby avoid a tax charge. This will be included in finance bill 2017.
Money purchase annual allowance (MPAA)
In order to prevent double tax relief by anyone aged 55 and over: The Money Purchase Annual Allowance that can be saved into a pension is to be reduced from £10,000 to £4,000 from April 2017.
This will apply to those who have already taken money from their pension pots.
Changes To In-Work Benefits
Whenever someone who claims Universal Credits begins to work, their benefit is lowered by 65p for every £1 they earn above an income threshold.
The government is proposing to reduce this rate to 63p, meaning for every £1 they earn, they will keep an extra 2p.
Car Insurance Premiums To Drop
The government’s crack down on whiplash claims is estimated to reduce insurance premiums by up to £40 a year.
Insurance Premium Tax increase
Will increase from 10% to 12% from 1 June 2017. Undoubtedly this will increase insurance premiums.
Fuel Duty Frozen
Fuel duty is not to be increased, saving drivers on average £130 a year. This will be the 7th consecutive year that this price has been frozen.
New National Savings Bond
From Spring 2017 the NS&I will be offering a new three year investment bond with an indicated rate of 2.2% gross.
This bond will be available to over 16s with investments available from £100 to £3,000.
Pension Scams Under Microscope
The government are seeking people to consult and advise on ways to tackle cold calling about pension issues.
Bank Fines Given To Charities
More than £102m worth of LIBOR banking fines are to be given to various projects that support armed services personnel and their families.
Charities that support children’s hospitals, air ambulances, museums and memorials will also benefit from this amount.