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Budget 2014: the headlines

19th March 2014

The Chancellor delivered his fifth Budget earlier this afternoon: his last but one before a 2015 General Election. The headline announcements include:

  • Economy recovering faster than forecast: growth forecast revised to 2.7% for 2014 
  • 1.3 million more people in work 
  • Deficit reduced to 6.6%: a small surplus predicted for 2018/19 
  • £1 coin to be replaced by new 12 sided coin in 2017 
  • Details of welfare cap to be published today 
  • Extension of 15% SDLT rate to residential properties purchased by companies to properties worth £500k or more 
  • Measures to prevent misuse of EIS & VCT schemes 
  • Measures to block transfer of profits between group companies in certain circumstances 
  • The upfront payment of tax by users of tax avoidance schemes covered by the DOTAS regime and by the GAAR 
  • Measures to allow HMRC to collect tax directly from the bank accounts of taxpayers who can afford to pay but don’t 
  • Help to buy scheme for homes extended to the end of the decade 
  • Seed EIS scheme made permanent 
  • Annual Investment Allowance increased to £500,000 until the end of 2015 
  • Class 2 National Insurance to be collected via Self-Assessment in future 
  • Bingo duty halved to 10% 
  • No fuel duty increase in September 2014 as planned 
  • Personal allowance increased to £10,500 from April 2015: higher rate taxpayers to benefit 
  • ISAs – cash and stocks and shares ISAs will be merged: annual allowance will increase to £15k from July 2014 
  • NS&I: new Pensioner Bond to be introduced from January 2015 
  • Wide ranging changes to defined contribution pension schemes and the requirement to buy annuities 
  • Abolition of the 10p savings tax rate 
  • Social Investment Tax Relief: 30% rate announced 

To read our detailed summary please click here. If you have any queries please contact our Tax Team by email