3 Shares that Could Benefit from the Autumn Statement

Tax breaks for air passengers under 16, annuities and home buyers all helped boost a selection of listed stocks - while banks and tech companies were hit with bigger taxes

Emma Wall 4 December, 2014 | 1:13PM

Savers and home buyers received a boost in yesterday’s Autumn Statement, with promises of tax cuts boosting the private purse. But it wasn’t just consumers who benefitted from George Osborne’s measures, several stocks bounced – and fell – as the Chancellor revealed his plans.

It was bad news for banks, as they will no longer be able to write off taxes against losses - a tax measures predicted to raise £4 billion over the next five years. Bank shares including Royal Bank of Scotland (RBS) fell at this news.

But stamp duty has been revolutionised, with a new system akin to the income tax thresholds introduced from midnight last night meaning 98% of home buyers will pay less stamp duty. Housebuilder stocks jumped after this announcement.

Specialist residential property advisers London Central Portfolio predicted that the housing market will be freed up extensively at the £250,000 mark, stimulating the market.

“The new measures are likely to increase buying activity and stimulate a sluggish market in England and Wales which outside Greater London has only seen 3% price growth over the last year, with prices no higher than the peak before the credit crisis,” said a spokesman. “This may stimulate the all-important feel good factor in the general economy.”

Osborne also abolished air passenger duty for children aged less than 12, and announced plans for this to be extended to children aged less than 16, meaning airplane and travel operators saw their share prices climb too.

Finally, annuity providers had some good news. After the abolition of compulsory annuity purchasing announced in March’s Budget pension providers’ share prices plummeted, but the announcement that from April pensions will be tax-free on death before age 75 and joint life annuities will also be tax-free on death before age 75 meant some annuity providers saw an uptick in shares.

We outline three stocks that saw stock prices jump yesterday and are potential long-term beneficiaries of the Autumn Statement measures, below.

Persimmon (PSN)

Persimmon, through its subsidiaries, engages in the house building business in the United Kingdom. It involves in the design and construction of various property types, including three, four, and five-bed detached properties.

EasyJet (EZJ)

EasyJet operates as a low cost airline company with over 605 routes across 30 countries with fleet of over 214 aircraft. It offers customers low fares to convenient airports and efficient and friendly service.

Just Retirement (JRG)

Just Retirement Group is a financial service provider. The Company offers individually underwritten annuities and lifetime mortgages in the United Kingdom.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
easyJet PLC1,490.00 GBX2.76
Just Group PLC70.65 GBX-1.19
Persimmon PLC2,977.00 GBX0.98
The Royal Bank of Scotland Group PLC224.70 GBX0.90

About Author

Emma Wall  is former Senior International Editor for Morningstar

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