George Osborne presented his Budget on Wednesday 19 March 2014.  In his speech the Chancellor set the scene for the announcements stating that ‘If you’re a maker, a doer or a saver: this Budget is for you.’

Main Budget tax proposals

  • The starting rate band for savings will be increased from April 2015 and the current 10% tax rate reduced to nil.
  • Individual Savings Accounts are to be simplified by merging the cash and stocks ISAs together with a significant increase in the investment limit from 1 July 2014.
  • Radical changes are to be made to the pensions regime including removing the restrictions on access to pension pots so there will no longer be a requirement to buy an annuity.
  • The Annual Investment Allowance is to be doubled to £500,000 until 31 December 2015.
  • An increase will be made in the R&D tax credit available to loss making SMEs to 14.5%.
  • Those using tax avoidance schemes may be required to pay tax upfront.

Please download our full Budget Newsletter here – Budget 2014 Newsletter.