Other measures

Inheritance tax (IHT)

The government will not introduce a single settlement nil-rate band as it originally proposed. However, there will be new rules to target avoidance through the use of multiple trusts and simplify the calculation of trust taxation.

The IHT exemption for members of the armed forces whose death is caused or hastened by injury while on active service will be extended to include members of the emergency services and humanitarian aid workers responding to emergency circumstances. It will have effect for deaths on or after 19 March 2014.

Capital gains tax (CGT)

Individuals will be prevented from claiming CGT entrepreneur’s relief on disposals of goodwill when they transfer the business to a related close company. This will affect transfers on or after 3 December 2014.

Gains that are eligible for entrepreneur’s relief will be allowed to remain eligible for the relief when their gain is finally realised if the gain is instead deferred into investments that qualify for the enterprise investment scheme (EIS) or SITR. This will benefit qualifying gains on disposals that would be eligible for entrepreneur’s relief but are deferred into EIS or SITR on or after 3 December 2014.

Other measures

The government has committed a further £50 million of LIBOR fines over the next six years to support military charities and other good causes.

From April 2015, UK search and rescue charities, air ambulance charities and hospice charities will be eligible to claim refunds on VAT that they have paid on purchases of goods and services for their non-business activities.

The Autumn Statement announced an exemption from reduced rate air passenger duty (APD) from 1 May 2015 for children under 12 years and from 1 March 2016 for children under 16 years.

Postgraduate students will be able to apply for income-contingent loans of up to £10,000 to undertake a taught master’s course from 2016/17.