Growth
GDP growth forecast for 2014 to 3.0% from 2.7%., 2015 to 2.4% from 2.3%.
Government Borrowing
2014/15 borrowing forecast is revised down to £91.3bn.
Inflation
Inflation predicted to be 1.5% in 2014, falling to 1.2% in 2015
Housing
Stamp Duty changes effective midnight.
The changes will apply to residential properties completed on or after 4 December 2014. Where contracts have been exchanged on or before 3 December 2014, and the transaction is completed on 4 December or later, you can choose whether to use the old or the new rules.
Purchase price of property Rate
Up to £125,000 Zero
Over £125,000 to £250,000 2%
Over £250,000 to £925,000 5%
Over £925,000 to £1.5 million 10%
Over £1.5 million 12%
Savings
Limit on saving in New ISAs to rise to £15,240
Duties
Fuel Duty frozen
Air Passenger Duty for children under-12 would be abolished next year, and under-16s from the following year
Personal Taxation
The personal income tax allowance will rise to £10,600 for 2015/2016, previously £10,500
The higher rate threshold of 40% tax bracket increases to £42,385 for 2015/2016, previously £42,285
Inheritance tax waived for spouses on ISA’s
Corporation Tax
Known as the “Google Tax” -25% tax on profits generated by multi-nationals that are shifted out of the UK which is forecast to raise £1bn over five years.
Bank profits which can be offset by losses for tax purposes to be limited to 50%
Inflation-linked increase in business rates capped at 2% and discount for shops, pubs and cafes increased by 50% to £1,500.
