From an Autumn Statement peppered with continuing austerity measures and deficit issues the main talking point was the reform of Stamp Duty. The Chancellor announced that the current system, where the amount owed jumps at each threshold level, would be replaced by a graduated rate, similar to income tax. The change came in at midnight and the new rates are detailed below.
Elsewhere in the Statement was a mixture of reliefs for some sectors and anti-avoidance measures for others. (Click the image below to download the statement)
- A 25% “diverted profits” tax – often called a “Google tax” – would be aimed at multinational companies.
- Air Passenger Duty for children under age 12 would be abolished next year, and for children under 16 from the following year.
- An extra £2bn would be put into health services across the UK.
- Banks restricted to sheltering 50% of future taxable profits with brought forward losses.
- R&D tax credits increased to 230% for SMEs and an 11% above the line credit for large companies.
- ISA tax free status transferred to surviving spouse on death.
- Pension annuities transferred on death not subject to tax.
- NIC abolished on apprenticeships for under 21s (under 25s from 2016).
- Non domiciled remittance basis charge increased.
- Various anti avoidance measures including late interest, Stamp Duty and incorporation.
- In a change from the figure announced in the budget, the personal allowance will rise from £10,000 to £10,600.
- Increased ISA allowance – annual ISA allowance to be increased to £15,240.
- VAT for hospices and air ambulances will be refunded.
REFORM OF STAMP DUTY
The current system of stamp duty is to be abolished and replaced with these new rates:
- Up to £125,000 – 0%
- £125,000 – £250,000 – 2%
- £250,000 – £925,000 – 5%
- £925,000 – £1.5m – 10%
- In excess of £1.5m – 12%
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