Category: Budget 2014

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Autumn Statement 3 December 2014

Key Points

 

Personal taxes

  • Tax free allowance raised to £10,600 next year.
  • Higher rate tax band raised to £42,385.
  • When someone dies, their husband or wife will be able to inherit their ISA tax free.
  • The inheritance tax exemption will cover aid workers who lose their lives dealing with humanitarian emergencies.

 

Corporate taxes

  • A 25pc tax on profits from activity in the UK for companies that shift profits offshore will raise £1bn over the next five years.
  • Business rates to be reviewed.
  • Tax relief for small and medium-sized businesses doubled, and a £45m package of support for exporters.
  • Tax credit for children’s TV producers
  • No employer national insurance on apprentices

 

Property

Stamp Duty reformed to become more progressive, introduces marginal tax rates. Changes come into force from tonight.

  • Up to £125,000 – no tax
    Up to £250,000 – 2pc
    Up to £925,000 – 5pc
    Up to £1.5m – 10pc
    Above that – 12pc

Stamp duty cut for 98pc of homebuyers who pay it, you pay more if you buy anything above £937,000.

 

Health

  • Confirmed £2bn a year extra spending on NHS
  • Extending £2,000 employment allowance to carers

 

Travel

  • Fuel duty frozen again
  • Air passenger duty for children under 12 abolished from next year, and for children under 16 the year after

Bank fines

  • £1.2bn of forex bank fines for GP services
  • Libor fines go to emergency services, Gurkhas, £10m for veterans with hearing problems, new helicopters and VAT refunds for search and rescue

 

Education

  • £10,000 student loans for postgraduate students doing masters degrees

 

Devolution

  • Northern Ireland to set corporation tax
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BUDGET 2014 THE KEY POINTS

 

PERSONAL TAX

  • The Personal Allowance will increase from £9,440 to £10,000 from April 2014 and to £10,500 from April 2015
  • Threshold for 40p income tax is to rise from £41,150 to £41,865 next month and by a further 1% to £42,285 next year.
  • Inheritance Tax waived for members of emergency services who give their lives in the job
  • 10p rate for savers is abolished

 

NATIONAL INSURANCE

  • The primary threshold for employees will increase from £7,755 to £7,956
  • Upper Earnings Limit will rise from £41,150 to £41,865
  • New NIC employment allowance of £2,000 begins in April 2014
  • Under 21’s taken out of employers’ national insurance contributions

 

CORPORATE TAX

  • Currently at 23%
  • Will be cut to 21% in April 2014
  • Will be cut again to 20% April 2015

 

PROPERTY AND INFRASTRUCTURE

  • Help to buy equity loan scheme extended to March 2020
  • From midnight tonight properties bought for more than £500,000 through “corporate envelopes” will be liable for 15% Stamp duty.
  • Government to create £500m builders finance fund which will provide loans to developers to unlock housing units stalled due to difficulty accessing finance

 

 

BUSINESSES

  • Annual investment aallowance to be doubled to £500,000 until the end of 2015
  • First enterprise zone in Northern Ireland to be established in Coleraine, which the government will support by offering enhanced capital allowances to investors within that zone.

 

DUTIES

  • Fuel duty rise as planned for Sept 2014 has been cancelled
  • Beer duty will be cut by 1 penny from 24 March 2014
  • Duty on spirits will be frozen for 2014-15
  • Machine games duty (MGD) the government will create a new higher rate of machine games duty at 25% for B2 machines
  • Bingo duty will be reduced from 20% to 10%
  • Tobacco duty will increase by 2% above the rate if inflation from 6pm on 19 March 2014. Annual duty increases of 2% above the rate of inflation will continue until the end of next parliament.

 

SAVINGS

  • A new single ISA will be introduced with equal limits for cash and stocks and shares. The annual investment limit will be increased to £15,000 per year
  • The cap on investments in premium bonds will be lifted from £30,000 to £40,000 from 1 June 2014, to be lifted again to £50,000 in 2015-16

 

PENSIONS

  • All tax restrictions on pensioners’ access to their pension pots to be removed. The taxable part of pension pot taken as cash on retirement to be charged at normal income tax rate, typically 20% down from 50%
  • There will be an increase in total pension savings people can take as a lump sum to £30,000
  • The total amount you can contribute to your pension scheme with tax relief each year is being cut from £50,000 to £40,000
  • The tax free lifetime allowance for the value of your pension pot is being cut from £1.5m to £1.25m

 

CHILDCARE

The Tax free childcare costs cap, against which parents can claim 20% support, will be increased to £10,000 per year for each child. This will mean that eligible parents can now benefit from greater support, worth up to £2,000 per child per year from autumn 2015. Tax free childcare will be rolled out to eligible families with children under 12 within the first year of the schemes operation.

 

The new 12 sided £1 coin to be introduced in 2017

£1 coin

 

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