Summary of the Autumn Statement 2012

• Pensions - The lifetime allowance will be reduced from £1.5m to £1.25m and the annual allowance from £50,000 to £40,000. These reductions won’t apply until April 2014, so there should be plenty of opportunities for advice on maximising pension contributions and tax relief in the run up to the end of the 2013/2014 tax year.

 

• Pensions - The Government will raise the capped drawdown limit from 100% to 120%, giving pensioners with these arrangements the option of increasing their incomes. Draft legislation is due in January.

 

• Tax - The personal tax allowance will rise by £235 more than planned in April next year. This means it will go up by £1,335 in total. The £100,000 personal allowance income limit remains unchanged, so high earners can achieve even greater tax savings by making pension contributions to ensure their income remains below £100,000.

 

• ISA - The ISA limit is to go up to £11,520 next April.

 

• Tax - The main rate of corporation tax will be cut to 21% from April 2014. It's already being cut from 24% to 23% on 1st April 2013.