George Osborne has presented a budget for “the makers, the doers and the savers” in effect wooing the pensioner vote in this next to last election budget. Here is a key point summary
Growth
GDP growth forecast for 2014 to 2.7%, from 2.4%., 2.3% in 2015, 2.6% in 2016 and 2017, and 2.5% in 2018.
Borrowing
2013/14 borrowing forecast is revised down to £95bn and borrowing for 2013/14 of £108bn is also lower than previous OBR predictions. Estimates for the following years have also below pervious forecasts.
All good news but we are still in the red with a budget deficit ( government spending more than it takes in taxation) is expected until 2018.
Housing
15 per cent stamp duty on homes worth more than £500,000 bought through companies
Help to Buy mortgage assistance scheme extended for new-build properties until 2020.
Duties
Petrol, spirits and cider duty frozen.
Cigarette duty will be 2% above inflation
Beer duty cut by 1p a pint.
Stocks , Savings and Pensions
Cash and stocks ISAs are to be merged into a single new ISA – officially called a… New ISA – with an annual tax-free savings limit of £15,000 from July 1, while the limit for a Junior ISA will be raised to £4,000.
The 10p starting rate of tax on income from savings is to be abolished altogether.
Pensioners will be able to draw down their entire pension pot as cash instead of buying an annuity.
New Pensioner Bond savings scheme from January to all over 65, paying interest rates of 2.8% for one-year bonds and 4% for three-year bonds
Personal Taxation
The personal income tax allowance will rise to £10,500 from April 2015( Rate for 2014/2015 £10,000.)
The higher rate threshold of 40% tax bracket increases to £41,865, from £41,540 for 2014/2015 and then by further 1 per cent to £42,285 for 2015/2016.
Individuals can transfer up to £1,050 ( raised from £1000) of their personal tax allowance between married couples and civil partners. To benefit from this one person must earn under the personal allowance, and the other must not earn more than the basic rate threshold
The 10p starting rate of tax on income from savings is to be abolished altogether.
Inheritance tax waived for emergency services personnel who “give their lives protecting us”
View our useful current tax rate 2013/2014 table
