This week, chancellor, George Osborne unveiled the Budget for the upcoming year. We round up some of the key points…
1) ISA’s – The complex rules regarding payment limits into stocks and shares, and cash ISA’s, will be removed from July 2014 and the annual maximum investment will increase from the current level of £11,250 to £15,000.
2) Personal Tax Allowance – The personal allowance will increase from £10,000 in 2014/15 to £10,500 from April 2015.
3) Inheritance Tax – IHT will be exempt on the estates of ‘emergency service workers’ killed in the course of duty.
4) Pensions – There have been a number of changes to pension rules: the removal of the requirement to buy an annuity, a reduction in tax charge from 55% to ‘20%’ for most pensioners wanting to take more than the current 25% tax free lump sum, and a raise in the trivial commutation from £18,000 to £30,000.
5) Premium Bonds – The annual investment limit is set to be increased by 33% from the current level of £30,000 to £40,000 from 1 June 2014 and the monthly top prize is to be ‘doubled’ starting with the August 2014 draw.
1) Annual Investment Allowance – The amount of AIA will be doubled to £500,000 from April 2014 and extended to December 2015.
2) Business Rates and Enhanced Capital Allowances – Businesses located in Enterprise Zones will be able to claim 100% ECA for a further three year period from 1 April 2017 to 31 March 2020.
3) Research and Development Tax Credits – From 1 April 2014 the rate of Research & Development payable credit for loss making small and medium size businesses will increase from 11% to 14.5%.
4) Stamp Duty – From midnight 19 March 2014 residential property worth over £500,000 will incur a 15% Stamp Duty Charge if the purchase is made by a company or collective investment schemes.
Here are our thoughts on this year’s budget.
If you’re concerned about any of these changes, and the implications it may have on your small business or personal finance, contact MCC Accountants today. Our team of Manchester accountants can talk you through everything and ensure you’re getting the most of the Budget. Give us a call on 0161 707 1500 or contact us through our website.