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March 20th 2014 / BY: Wisteria

How Will The Budget 2014 Affect You?

As the country begins to digest the facts and figures of the budget, the question many of us want to know is, “How will the Budget affect me?”.

Most people will find themselves in at least one of the following categories – here’s a rundown of key points that will affect you.

Small Business Owner?
• Direct lending from government to UK businesses to promote exports doubled to £3bn and interest rates on that lending cut by a third.
• Business rate discounts and enhanced capital allowances in enterprise zones extended for three years.
• The Annual Investment Allowance doubled to £500,000 until the end of 2015.
• Extended grants to support 100,000 more apprenticeships.

Working Person?
• Point at which people start paying income tax will be raised to £10,500.
• Threshold for 40p income tax to rise from £41,450 to £41,865 next month and by a further 1% to £42,285 next year.

Pensioner?
• Taxable part of pension pot taken as cash on retirement to be charged at normal income tax rate, which is down from 55%.
• All tax restrictions on pensioners’ access to their pension pots to be removed, ending the requirement to buy an annuity.
• Increase in total pension savings people can take as a lump sum to £30,000.

Parent?
• Parents paying 80% of childcare costs of up to £10,000 per child, aged up to 12, to a registered provider will get the remaining 20% from the government tax-free from September next year.

First time buyer?
• Help to Buy equity scheme for new-build homes extended to 2020.

Saver?
• The 10p tax rate for savers abolished.
• Cap on Premium Bonds to be lifted from £30,000 to £40,000 in June and £50,000 next year.
• Cash and shares Isas to be merged into single New Isa with annual tax-free savings limit of £15,000 from 1 July.

Motorist?
• Fuel duty rise planned for September will not happen.
• £200m made available to fix potholes.

Entertainment Lover?
• Bingo duty will be halved to 10%.
• Duty on fixed-odds betting terminals increased to 25%.
• Beer duty cut by 1p a pint.
• Tobacco duty to rise by 2% above inflation.

What do you think of the Chancellor’s Budget? Will it help you in the coming tax year?