The capital gains tax annual exempt amount will be frozen at the current levels for tax year 2011-12 for the tax year 2012-13 (£10,600 for individuals and personal representatives and £5,300 for trustees).

The government has also confirmed that legislation will be introduced in the Finance Bill 2012 to automatically increase the annual exempt amount in line with the consumer price index thereafter (see Private client tax legislation tracker 2011-12: CGT: annual exempt amount).

For details of the annual exempt amount for current, past and future tax years, see Practice note, Tax data: capital gains tax: Exemptions.

(See HM Treasury: Autumn Statement document 2011, paragraph 2.19 and Autumn Statement 2011: policy costings, page 16.)

The government announced that, following the consultation that took place during summer 2011, it will legislate to enable individuals to receive a reduction in their income tax or capital gains tax liabilities, and companies to receive a reduction in their corporation tax liabilities, in return for lifetime donations of pre-eminent objects (such as works of art or historical objects of national importance) to the nation.

The government also announced that the new scheme will be more generous than originally proposed. Total tax reductions under the new scheme, together with taxes offset under the existing inheritance tax acceptance in lieu (AIL) scheme, will be subject to an annual limit of £30 million. This is an increase of £10 million on the combined annual limit of £20 million proposed in the government's consultation document.

The measure is to take effect to allow for tax reductions in the tax year starting April 2012.

For further details of the government's original proposal for the new scheme and how it interacts with the AIL scheme, see Legal update, Tax reduction for gifts of art to the nation: consultation.

To review developments and follow the progress of the new scheme, see Private client tax legislation tracker 2011-12: Tax reduction for gifts of art to the nation.

(See HM Treasury: Autumn Statement document 2011, paragraph 2.35 and Autumn Statement 2011: policy costings, page 24.)

The Chancellor announced that the government will introduce a new scheme (Seed Enterprise Investment Scheme (SEIS)) from April 2012 to encourage investment in new start-up companies.

SEIS will provide:

There will be a cumulative investment limit of £150,000 for the start-up company, whose total assets before investment must be below £200,000.

While the announcement was widely anticipated (the government consulted on proposals to give support to start-up companies through seed investment in the summer, see Legal update, Reform of venture capital schemes and creation of seed investment scheme: consultation), the rate of relief is more generous than expected (the proposal in the summer was for 40% tax relief). However, the investment limits are less generous than hoped for. Further, while not stated in the published autumn statement, the Chancellor confirmed during his speech that the 50% rate of relief would be available irrespective of the investor's marginal tax rate.

It would appear that the government has dropped its proposal that the investor must be a business angel to qualify for relief. However, until the draft legislation is published, the precise scope of the SEIS is unclear.

For further details about SEIS and other venture capital changes, see Legal update, 2011 Autumn Statement: business tax implications: Seed enterprise investment scheme and venture capital reform

(See HM Treasury: Autumn Statement document 2011, paragraphs 2.15 to 2.18, Autumn Forecast Statement by the Chancellor of the Exchequer and Autumn Statement 2011: policy costings, page 20.)

The government is publishing analysis showing that the temporary stamp duty land tax (SDLT) relief for first time buyers of residential property has been ineffective in increasing the number of first time buyers (for background, see Practice note, SDLT reliefs for residential property: The reliefs). As a result, the relief will come to an end on 24 March 2012 as planned.

For further details of the relief, see Tax data: stamp taxes: Temporary reliefs.

(See HM Treasury: Autumn Statement document 2011, paragraph 1.103.)

The government has confirmed that the income tax personal allowance for 2012-13 will be £8,105 (the 2011-12 personal allowance is £7,415). The basic rate limit will come down to £34,370 (from £35,000 in 2011-12). The additional rate threshold will remain at £150,000. There are no rate changes. This reflects the 2011 Budget announcement, see Private client tax legislation tracker 2011-12: Income tax: rates and allowances.

The government has also confirmed that the ISA overall limit will be £11,280 (£10,680 in 2011-12) and the cash limit will be £5,640 (£5,340 in 2011-12). For further details of ISA limits and the junior ISAs introduced on 1 November 2011, see Practice note, Tax data: individual savings accounts.

Other rates, allowances and thresholds for the tax year 2012-13 will be announced in the 2012 Budget.

(See HM Treasury: table confirming tax and tax credit rates and thresholds for 2012-13.)

The government announced that, following consultation that took place during summer 2011, it will introduce a VAT exemption for services shared between VAT exempt bodies.

This exemption should enable, amongst others, charities and other "not-for-profit" organisations that make VAT exempt supplies (such as independent schools, universities and higher education colleges, housing associations and residential care homes) and/or have non-business activities, to collaborate to achieve cost savings and economies of scale. Charity sector organisations have campaigned extensively for the EU exemption to be implemented.

HMRC has published an information note on the VAT cost sharing exemption (see HMRC: VAT: Cost Sharing Exemption). This confirms that legislation will be introduced in the Finance Bill 2012 to implement the EU VAT cost sharing exemption into UK law from the date of Royal Assent. This also includes details of HMRC's approach where a taxpayer seeks to apply the cost sharing exemption to supplies now, relying directly on the EU VAT legislation (see direct effect). HMRC warns that the model that is now being implemented differs in a number of material ways from that outlined in its consultation document.

Draft legislation and responses to the consultation will be published on 6 December 2011. HMRC is to work with stakeholders to produce comprehensive guidance ahead of implementation.

For further details of the VAT cost sharing exemption and HMRC's consultation, see Legal update, VAT cost sharing exemption consultation document published.

To review developments and follow the progress of the cost sharing exemption, see Private client tax legislation tracker 2011-12: VAT: EU cost sharing exemption.

(See HM Treasury: Autumn Statement document 2011, paragraph 2.34 and Autumn Statement 2011: policy costings, page 22, and HMRC: VAT: Cost Sharing Exemption.)