Budget Summary for 2014 – ‘For doers and savers’

 

The Chancellor George Osborne delivered his Budget speech to Parliament today, a Budget he said was aimed at ‘makers, doers and savers’.

A number of tax related changes were unveiled, and we summarise the key points below:

  • Effective from July, there will be a new £15,000 ISA savings limit made up of either cash or stocks
  • New NS&I savings bond available exclusively to people over the age of 65, which provide improved returns and certainty
  • Increased flexibility for drawing down on your pension pot, allowing for cash drawdown instead of a compulsory annuity purchase
  • The existing 10% savings tax rate will be reduced to 0% and it’s limit increased to £5,000
  • The tax free Personal Allowance will increase from £10,000 to £10,500 from April 2015
  • The Annual Investment Allowance for businesses will be doubled to £500,000 until the end of 2015.
  • HMRC will be given an increased budget to tackle non compliance
  • HMRC will also be given the power to collect debts directly from bank accounts of people who can afford to pay but have repeatedly failed to do so
  • The increased 15% Stamp Duty for properties bought via a corporate body will now apply to residential properties valued over £500,000, down from the current £2,000,000
  • Business rate discounts and enhanced capital allowances in Enterprise Zones have been extended for a further three years
  • Childcare tax relief increased from £1,200 to £2,000 per child per year

If you are unsure how any of these changes affect you, then please contact our tax team or call 0161 249 5040 who will be happy to discuss them in more detail.