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.
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.
- 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.
- 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.
- 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.
- 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.