A summary of the key announcements in George Osborne’s Budget of 19th March. Many of the changes revealed were re-announcements from the Autumn Statement of little more than three months ago.
Nevertheless, the improving economic landscape did allow the Chancellor to spring a few surprises.
The Budget highlights include:
• The personal allowance will be increased to £10,000 in 2014/15, and the higher rate threshold by £415 to £41,865.
• A new tax-free childcare scheme, from autumn 2015, to provide 20% of childcare costs up to £10,000 per child per year, for children under the age of 12.
• The new single-tier pension will now be introduced from April 2016.
• An employment allowance of £2,000 for businesses and charities to set against their employer NICs from April 2014.
• A single rate of corporation tax of 20% for companies from April 2015.
• Stamp duty is to be abolished for shares listed on exchanges (e.g. AIM) from April 2014.
• A limited one year extension of CGT reinvestment relief for seed enterprise investment schemes (SEIS).
• Measures to increase the supply of low-deposit mortgages for credit-worthy households including a government-backed mortgage guarantee scheme from January 2014.
• Specific anti-avoidance measures alongside the new general anti-abuse rule (GAAR)
• Significantly increased ISA allowances from July 2014, and great flexibility.
• Major changes and flexibility to Pensions announced.
We trust that you find the enclosed Budget Summary useful, and that it is a helpful basis for a discussion with us about your financial future.
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Blacktower Financial Management Ltd