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Budget 2014 - at a glance summary

posted 20 Mar 2014, 05:23 by Richard White   [ updated 26 May 2015, 04:46 ]

For Businesses

The key budget announcements affecting businesses included:
  • Exports - lending available to exporters has been doubled to £3Bn
  • Business Rates - Discounts for businesses in enterprise zones have been extended for 3 years
  • Research & Development - the R&D tax credit for small loss-making firms has increased from 11% to 14.5%
  • Capital Investment - The Annual Investment Allowance (AIA) will be doubled from £250k to £500k from April 2014 and will be extended to December 2015
  • Apprenticeships - the apprenticeships grant for small employers has been extended
  • Housing - Small house building firms will have access to £0.5Bn of finance.

For Individuals

The key budget announcements affecting individuals included:
  • Income Tax - The tax free annual personal allowance will increase to £10,500 from April 2014. The higher rate threshold will rise to £41,865 from April 2014 and will rise by a further 1% to £42,285 in 2015. The transferable tax allowance for married couples and civil partners will rise to £1,050.
  • Pensions - People retiring with defined contribution pensions will receive free one to one impartial guidance about their pension. The guaranteed income requirement for flexible drawdown eligibility will be cut from £20k to £12k. Tax on pension amounts taken as a lump sum, over and above the 25% tax free entitlement will be charged at normal marginal income tax rates rather than at 55% from April 2015. Compulsory annuities will be scrapped and there will be more flexibility when drawing an income from a pension
  • Pensioner Bond - a new Pensioner Bond will be introduced National Savings and Investments from January 2015. The rates will be set in Autumn 2014, but are expected to be 2.8% for a one year bond and 4% for a three year bond.
  • Premium Bonds - The current investment cap will rise from £30k to £40k in June 2014 and will increase to £50k the following year. The number of million pound winners will be doubled.
  • ISAs - Stocks and shares and Cash ISAs will be merged to create one New ISA with a tax free limit of £15k from 1st July 2014. The Junior ISA allowance will increase to £4k per annum
  • Investment - The Seed Enterprise Investment Schemne (SEIS) has been made permanent. A new 30% Scoial Investment Tax Relief on investment in social enterprises is introduced
  • Fuel Duty - the fuel duty rise planned for September 2014 has been scrapped
  • Tobacco Duty - Tobacco duty will continue to rise at 2% above inflation
  • Alcohol Duty - The alcohol duty escalator has been scrapped. Alcohol duty will rise in line with inflation with the exception of Scottish whisky and cider which are frozen.
  • Beer Duty - Beer duty will be cut by one pence a pint