2014 Budget Highlights

Treasury Chancellor George Osborne has announced his 2014 Budget. Here is the summary of the key changes in the Budget:

• Personal Allowance increased from £9,440 to £10,500.
• ISA Allowance increased from £11,520 to £15,000.
• The Annual Investment Allowance for Companies will increase from £250,000 to £500,000 from 6 April 2014.
• The Seed Enterprise Investment Scheme (SEIS) to be made permanent.
• The 10% starting rate tax for savers in the low earnings threshold is to be abolished from April 2015.
• The Chancellor’s most sweeping reform was to the pension system. From April 2014 pensioners will be allowed to withdraw some or all of the funds from their pensions when they retire. This removes the need to buy annuities which have performed poorly of late and means that individuals over 55 will with a defined contribution scheme will be permitted to withdraw their pension funds as a lump sum.
• The 15% stamp duty threshold will be reduced from £2m to £500,000 for properties purchased through the use of Limited Companies. Buy to let investors will not be affected by the change.
• The government’s Help To Buy Scheme has been extended by four years to 2020.

A more detailed analysis of the Budget will follow. Please monitor the website for updates. Belsize Accountancy are specialist accountants for contractors and small businesses.