At 12.30pm on Wednesday 5th December Chancellor George Osborne announced his Autumn Statement 2012 setting out the coalition government's fiscal plans for the coming years.
With the economy still not back on track and a deficit that still needs to be plugged no one expected the Chancellor's Autumn Statement to be easy to swallow.
We've summarised the aspects of the Autumn Statement 2012 that are most likely to have a direct impact on your finances.
Check the table, find out how you'll be affected by the changes then share your opinion of the Chancellor's plans with our community.
|Personal allowance || |
Personal allowance will increase to £9,440 from next April, an extra £235 on top of the rise already planned. That means that you’ll be able to earn £1,335 more without paying tax.
|40% tax threshold || |
- The higher rate income tax threshold will increase by 1% in 2014 and 2015, to £41,865 and £42,285 respectively.
|ISAs || |
|Inheritance tax || |
- The inheritance tax nil-band rate will increase by 1% to £329,000 in 2015.
|Capital gains tax || |
- The Capital Gains exemption threshold will increase by 1% a year for two years from 2014 - to £11,000 then approx. £11,100 respectively.
|Council tax || |
- Local Authorities will be incentivised to freeze or reduce council tax in 2013 through the government-run grant system currently in place.
|Corporation tax || |
- The main rate of Corporation Tax will be cut to 21% in April 2014.
|Small business rate relief || |
- Small business rate relief will be doubled for a further 12 months from April 2013.
|Tax avoidance || |
- Tax avoidance loopholes will be closed, advisors that market 'aggressive' tax avoidance schemes will be stopped and a dedicated HMRC taskforce to tackle offshore tax evasion will be created.
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|State pension || |
- The basic state pension will be increased by 2.5% in April 2013, the equivalent of £2.70 extra a week.
|Pension contributions || |
- The annual allowance for pension contributions will be reduced from £50,000 to £40,000 and the lifetime allowance from £1.5m to £1.25m in 2014.
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|Fuel || |
- The 3p/litre fuel increase due for January 2013 will be cancelled until September at the earliest.
|Trains || |
- Increases in regulated rail fares and Transport for London fares will be capped at maximum of 1% above the RPI rate of inflation from January.
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|Benefits & tax credits |
|Benefit cap || |
- Annual increases to most work-related benefits and tax credits will be capped at 1% for 3 years from April 2013. This includes the main elements of Jobseeker's Allowance, ESA and Income Support, Child Tax Credit and Working Tax Credit (except the family element and elements already frozen).
- Planned increases to pension, disability and carer benefits will not be affected.
|Child benefit || |
- Child benefit will be limited to a 1% a year rise for two years from 2014.