The Budget 2014 – Are you a Maker, a Doer or a Saver?
20 March 2014
In the Budget 2014 statement on Wednesday 19 March 2014 the Chancellor, George Osborne in his 5th speech set the scene for the announcements stating that ‘if you’re a maker, a doer or a saver: this Budget is for you.’
Towards the end of last year the Government issued the majority of the clauses, in draft, of the Finance Bill 2014 together with updates on consultations. The publication of the draft Finance Bill clauses is now an established way in which tax policy is developed, communicated and legislated.
The Budget 2014 updates some of these previous announcements and also proposes further measures. Some of these changes apply from April 2014 and some take effect at a later date.
Our summary focuses on the issues likely to affect you, your family and your business. To help you decipher what was said we have included our own comments. If you have any questions please do not hesitate to contact us for advice.
Main Budget tax proposals in the Budget 2014
- The personal allowance has risen from £10,000 to £10,500 for tax year 2015/16.
- The point at which you start paying tax at 40% has risen from £41,450 to £41,865.
- The starting rate band for savings will be increased from April 2015 and the current 10% tax rate reduced to nil.
- Individual Savings Accounts are to be simplified by merging the cash and stocks ISAs together with a significant increase in the investment limit from 1 July 2014.
- Radical changes are to be made to the pensions regime including removing the restrictions on access to pension pots so there will be a requirement to buy an annuity.
- The Annual Investment Allowance is to be doubled to £500,000 until 31 December 2015.
- An increase will be made in the R&D tax credit available to loss making SMEs from 11% to 14.5%.
- Those using tax avoidance schemes may be required to pay tax up front.
If you would like to look into the Budget 2014 measures in a little more detail please download a copy of our Budget booklet here
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