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.

Sochi Winter Olympics To Be Most Expensive Games Ever

The 2014 Winter Olympics hosted in Sochi is set to become the most expensive Olympic Games in history. The Games are expected to cost Russia in excess of $51 billion, which is $10 billion more than Beijing 2010.

Need help with your budget and finances? Belsize Accountancy are specialist accountants for UK contractors and small businesses. Contact us on 0207 043 0052 for a free quotation.

Tax Tip – Top Up Your ISA Prior To 5 April 2014

As we approach the end of the tax year 2013/14, we would like to remind our readers to use up their 2013/14 ISA allowance if you have not done so already. Contractors with spare cash are advised to use up the tax free ISA allowance of £11,520 by 5 April 2014. ISA’s provide a tax free investment to savers and if you do not use the allowance you will lose it. Investments after 5 April 2014 will utilise next year’s allowance.

You are able to invest up to £5,760 in a cash ISA for 2013/14. A total of £11,520 can be invested into a stocks & shares ISA during the tax year although the allowance covers the cash ISA and so if you have invested in a cash ISA, the maximum available to invest in a stocks and shares ISA is £5,760.