BUDGET 19 MARCH 2014 – KEY POINTS

BUDGET 19 MARCH 2014 – KEY POINTS

Below is a summary of George Osborne’s latest budget, he describes the budget as “a budget for people who aspire to work hard and get on” with ‘Savers at centre of Budget’

Fuel duty

The fuel duty rise that was planned for September has been scrapped.

Alcohol duty

The alcohol duty escalator scrapped AND Scottish whiskey, which Osbourne says is a “huge British success story”. Instead of raising duties on scotch whiskey they have been frozen.

Duty frozen on ordinary cider too.

Beer duty cut by 1 pence – a penny of a pint for the second year running

Tabacco duty

Tobacco duty will rise at 2pc above inflation.

Income tax

The income tax threshold will rise to £10,500 from next year which equates to £800 less in tax every year for the typical tax payer.
The higher rate threshold will rise for first time from £41,540 to £41,865 and further to £42,285 next year.

ISA’s

ISAs are to be merged into a single New ISA with an annual tax-free savings limit of £15,000 from 1 July. The limit for Junior ISA will be raised to £4,000.

Stamp Duty

Stamp duty on homes worth more £500,000 to rise to 15% for those bought by companies (subject to certain reliefs), as part of tax avoidance measures.

Pensioners

Pensioners will be offered a Government savings accounts offering 2.8% a year, 4% over three years

Energy

There will be investment in new sources of energy, new nuclear, renewables and shale gas.

There is a £7bn package to cut energy bills for British manufacturers.

Carbon price support rate capped at £18 per tonne in 2016, which will save the medium manufacturer £50,000 on annual energy bill and save families £15 a year on their bills.

Business rates

Business rates discounts will be extended for another three years.

The first enterprise zone to be established near Coleraine .

R&D tax credit rate for small businesses to rise from 11% to 14.5%

The government will back investment into social enterprise and supporting creative industries.

Annual investment allowance increased doubled to £500,000 to the end of 2015 and this will start next month.

Help for home buyers

Help to Buy Scheme is being extended. 150,000 new homes to be built.

Investment

£140m to be made available on top of what has already been provided for immediate repairs and maintenance to damaged flood defences.

Legislation will be introduced to give new tax and borrowing powers to the Welsh Assembley to fund infrastructure needs

New centres for doctoral training, cell therapy and grapheme.

Grants extended to smaller businesses to support a further 100,000 apprentices.

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