George Osborne presented his Budget on Wednesday 19 March 2014. In his speech to a packed House of Commons the Chancellor set the scene for the announcements stating that “If you’re a maker, a doer or a saver: this Budget is for you.” Our attached 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.
Please also take a look at our tax card. The Budget announced or confirmed many of the figures fundamental to our business and personal lives and the main ones are summarised on the tax card. We hope this will be a useful point of reference throughout the coming tax year
If you have any questions please do not hesitate to contact us for advice.
Main Budget tax proposals
- The starting rate band for savings will be increased from April 2015 and the current 10% tax rate reduced to nil.
- Individual Savings Accounts (ISAs) 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 that there will be no longer a requirement to buy an annuity.
- The Annual Investment Allowance (AIA) 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 to 14.5%
- Those using tax avoidance schemes may be required to pay tax upfront.