Spring budget 2014 speech headlines

The chancellor has talked today for 55 minutes presenting his budget however these were only the headlines; the full content, released when he sat down is still to be examined and analysed to see its effects.

Spring Budget 2014 Speech Headlines

The Usual Hot Topics

  • Fuel duty was set to go up next September, but this is now frozen.
  • Standard alcohol duty rises are going to be revised to just be inline with inflation.
  • Whisky, other spirits and cider duties are to be frozen.
  • Beer duty is to drop by 1p per pint.
  • Tobacco duty up by 2% plus inflation.

Headline Tax rates

  • The personal tax free allowance is to increase by £500 to £10,500 from April 2015.
  • The current £2000 10% savings rate tax band is to be “abolished” and replaced by a £5,000 tax free savings rate band.
  • The 40% tax band is to be increased by 1% to £41,865 for 2014/15 and £42,285 for 2015/16.
  • Small companies Corporation Tax rate remains at 20% and large companies’ rate drops again to 21% this year and from April 2015 will be 20% for all.
  • Transferable allowance for Married couples to increase to £1,500.

Business Incentives

  • Investment allowance doubled to £500,000 until December 2015.
  • Apprentice Grants extended to include Graduates.
  • Research & Development cash back increased from 11% to 14.5%.
  • Loans for Exporters and Small Building companies.

Inventor Perks

  • Premium bond investment limit increased and prizes increased.
  • Cash and Shares ISA’s merged and limit increased to £15,000.
  • SEIS made permanent.
  • Film investment scheme extended to theatre.

Pensioners Surprises

  • New Pension bonds paying 4% interest.
  • Penalty tax on excessive pension drawdowns abolished.
  • Relaxation of rules – Annuity purchase no longer compulsory form 27th March 2014.

Extras

  • Class 2 National Insurance Stamp to be collected via personal tax returns.
  • New Right to Build scheme.
  • Bingo duty halved.
  • Air Passenger duty on long haul flights reduced.
  • VAT levied on Prompt Payment discounts not taken.
  • Company car taxes increased in energy efficiency drive.
  • Bank Penalties to be used to help charities.
  • VAT relief on fuel for emergency vehicles.
  • Tax to be collected up front on untested Tax Avoidance schemes.
  • Tax free earnings for visitors to 2014 Glasgow Grand Prix.
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