DCSIMG

The Budget at a glance

Chancellor of the Exchequer George Osborne outside 11 Downing Street before delivering his annual Budget statement.

Chancellor of the Exchequer George Osborne outside 11 Downing Street before delivering his annual Budget statement.

BUDGET AT A GLANCE:

ECONOMY

• Economy grew by ‘three times as much’ as forecast 0.6 per cent in 2013.

• Borrowing expected to be £108billion this year - £12billion less than forecast a year ago.

WELFARE & TAX AVOIDANCE

• People signed-up to disclosed tax avoidance schemes to be required to pay their taxes up front.

• Tax on homes owned through a company to be extended from residential properties worth more than £2million to those worth more than £500,000. Residential property worth more than £500,000 bought through corporate envelope to be liable to 15 per cent stamp duty.

• Compliance checks on migrants claiming benefits they are not entitled to to save almost £100million.

• Inheritance tax waived for emergency services personnel who ‘give their lives protecting us’. VAT waived on fuel for air ambulances and inshore rescue boats.

BUSINESS

• Lending for exporters doubled to £3billion and interest rates on that lending cut by one third.

• Reform of air passenger duty so all long haul flights carry the same tax rate as currently charged for flights to USA.

• Housing policies to support more than 200,000 new homes.

• Additional £140million made available for repairs and maintenance to flood defences. Additional £200million for potholes.

• Mr Osborne said he was ‘determined’ that the HS2 rail link should go ‘further north faster’.

• Business rate discounts and enhanced capital allowances in enterprise zones extended for further three years

• The 2 per cent increase in company car tax to be extended to 2017 and 2018.

DUTIES

• Fuel duty rise planned for September ‘will not take place’.

• Duty on fixed odds betting terminals increased to 25 per cent, horse racing betting levy extended to offshore bookmakers

• Tobacco duty to rise by 2 per cent above inflation, and the escalator extended for the rest of the next Parliament.

• Alcohol duty escalator scrapped, so taxes will rise in line with inflation except for on whisky and other spirits

• Duty on ordinary cider frozen. Beer duty cut by 1p a pint.

PERSONAL TAXATION & SAVINGS

• Personal tax allowance to be raised to £10,500 next year, resulting in £800 income tax reduction for typical taxpayer.

• Transferable tax allowance for married couples to rise to £1,050.

• Cash and stocks ISAs to be merged into single New ISA with annual tax-free savings limit of £15,000 from July 1.

• Cap on Premium Bonds to be lifted from £30,000 to £40,000 in June and £50,000 in 2015

PENSIONS

• Reform of taxation of defined contribution pensions to help 13million people from March 27.

• Tax on cash taken out of pension pot on retirement to be reduced from 55 per cent to 20 per cent.

• All tax restrictions on pensioners’ access to their pension pots to be removed, ending the requirement to buy an annuity. • • • • Abolition of 10p starting rate of tax on income from savings.

 

Comments

 
 

Back to the top of the page