Today we heard the Government’s Autumn Statement, their plans for Growth and the impact on the economy as they see it.
There were some significant announcements made, many of which were expected in part (as a result of leaks in preceding days) albeit there is a huge amount of detail in the background with 110 growth measures announced.
We will attempt to identify some of the key detail here.
VAT
There was nothing specific mentioned about VAT in terms of headlines although as has been mooted in recent months the Government will extend the current Zero Rate of VAT available on women’s sanitary products to include reusable period underwear from 1 January 2024, meaning the relief is available to products which may me viewed as more environmentally friendly.
There has also been an extension to the Energy Saving Materials VAT Relief. This has been extended to include additional technologies such as water source heat pumps. However, in addition the relief, that was originally restricted to installations in a relevant residential property, has now been extended to include the charity sector as well.
Personal Tax
It was thought that there might be an announcement about a cut to Inheritance Tax, but the statement is silent in that regard. In fact there were only a few points of note.
Benefit increases
The government is increasing all working age benefits in line with CPI inflation, which is 6.7% for 2024-25.
Furthermore, the basic State Pension, new State Pension and Pension Credit standard minimum guarantee will be uprated in April 2024 in line with earnings growth at 8.5% therefore keeping to the promise of the Triple Lock.
National living wage
From 1 April 2024, the National Living Wage (NLW) will increase by 9.8% to £11.44 an hour for eligible workers across the UK aged 21 and over.
One Pension Pot
The government is launching a call for evidence to simplify the pensions market by allowing individuals to move towards having one pension pot for life.
ISA allowances
The government is freezing the Individual Savings Account (£20,000), Junior Individual Savings Account (£9,000), Lifetime Individual Savings Account (£4,000 excluding government bonus) and Child Trust Fund (£9,000) limits at their current levels for 2024-25.
If you have any questions for our Tax experts as a result of this Autumn Statement, please contact us on 01242 776000 or tax@randall-payne.co.uk.
