BUDGET SUMMARY:  19 March 2014

the budget the peloton

George Osborne has waved his big red briefcase at us once again, and this is what we at The Peloton think is the pick of George’s speech… essentially a round-up of what will affect both you and us!

Personal Taxes

  • The personal allowance has increased by £500 from £10,000 to £10,500 next April.

  • 40% higher rate tax threshold to rise by 1% from £41,450 to £41,865 in April, and then another 1% to £42,285 in 2015.

  • The cash and stock ISAs are to be merged, meaning the tax-free limit for ISAs has been increased to £15,000 per annum.

  • The 10p saving rate has been abolished.

  • Tax free savings rate has been increased from £2,800 to £5,000.

Business

  • Annual Investment Allowances for businesses doubled to £500,000 and extended to the end of 2015.

  • No employers’ national insurance for Under 21s.

Tax avoidance

  • Properties worth more than £500,000 bought by companies will be liable for 15% stamp duty, from midnight tonight, plus an annual tax.

  • Those accused of using a tax avoidance scheme and appealing will have to pay tax up front while they appeal, rather than after.*

Other notables…

  • The proposed fuel duty rise in September has been scrapped.

  • 1p off a pint of beer**

If you’d like to talk to one of the team about the Budget, give us a call  [highlight_one] 01326 660022 [/highlight_one]

* “Taxpayers who have sought tax advantages through tax avoidance schemes that fall within the Disclosure of Tax Avoidance Schemes (DOTAS) rules or are counteracted under the General Anti-Abuse Rule (GAAR). This measure extends requirement for taxpayers to pay disputed tax upfront to any disputed tax associated with schemes covered by the DOTAS rules or counteracted under the GAAR.” HMRC.

** and with that in mind… pub, anyone?