Autumn Statement 2014: winners and losers

Published by Mark King on 03 December 2014.
Last updated on 03 December 2014

Winners and losers

George Osborne hasn't got a huge amount of cash sitting around in his coffers at present, but he managed to dig deep to surprise certain sections of the population in his Autumn Statement. But there were also some groups of people who may well be miffed at some of his announcements.

Here's our rundown of who benefited the most from the 2014 Autumn Statement – and who lost out.

WINNERS

Homebuyers

The Chancellor's reforms to stamp duty on property will result in 98% of buyers paying less in the tax than they would have under the old system. Someone buying a home for £275,000 will now pay stamp duty of £3,750 rather than the £8,250 they had to pay under the old system – saving them £4,500.

Low-earners

It's not much of a boost, but the income tax personal allowance will rise to £10,600 in April rather than the £10,500 that had been planned for next year.

High earners

The higher rate income tax threshold will rise to £42,385 next year, meaning those who earn more will receive a tiny boost in their pay packets.

Savers

From April 2015 savers will be able to invest a total of £15,240 a year in their Individual Savings Account (Isa) – up from £15,000. Plus Osborne said that – with immediate effect – people will be able pass on their Isas to their spouse free of tax when they die.

Holidaying families

From 1 May 2015, children under 12 will no longer have to pay Air Passenger Duty, with the charge also being abolished for under-16s in May 2016. This could save a family of four well over £100 if flying to the US.

Drivers

The government has frozen fuel duty once again, meaning drivers will not face a sudden increase in petrol prices at the pumps.

Aid workers

Aid workers who die in service will be exempt from inheritance tax, bringing them in line with members of the Armed Forces.

LOSERS

High-end property buyers

People buying hugely expensive homes will pay more in Stamp Duty following reforms to the property tax. Under the old system, the top rate of Stamp Duty was 7% (on homes over £2 million) whereas the new tax hits 12% for homes over £1.5 million.

Factoring in changes to the bandings, it is estimated that anyone buying a home of over £937,000 will pay more in Stamp Duty.

Families on benefits

The Chancellor announced more cuts to benefits, with Universal Credit Work allowances frozen for a year.

Immigrants

Osborne said immigrants who have no prospect of work will no longer receive unemployment benefits.

Non-domiciled people

People who are non-domiciled in the UK already face an annual charge of £30,000 – but those that have been here for 12 of the last 14 years will pay £60,000 a year, rising to £90,000 if they have been here for 15 of the last 17 years.

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