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 Accounting News & Insights

Spring Budget 2014 Highlights & Our Commentary

25th March 2014

Personal Tax highlights:

  • The tax-free personal allowance will increase to £10,500 from April 2015.
  • Transferable tax allowances for married couples – from 2015/16, married couples and civil partners will be able to transfer £1,050 of their personal allowance to their spouse or civil partner (eligible where neither partner is a higher/additional rate taxpayer).
  • Starting rate for savings income – from 2015/16, the maximum amount of an eligible individual’s savings income that can qualify for the starting rate of tax for savings will increase from £2,880 to £5,000.  The starting rate will also reduce from 10% to nil.

Corporate & Business Tax highlights:

  • As previously announced, the Corporation tax rate will reduce to 21% from April 2014 and 20% from April 2015. With the merging of the normal and small rate at 20%, associate companies rules will be simplified in April 2015 based on 51% shareholding.
  • From April 2014 until the end of 2015, the Annual Investment Allowance will be doubled from £250,000 to £500,000.
  • Research and development (R&D) tax credits – the rate of tax credit payable to loss making small and medium enterprises will increase from 11% to 14.5% from April 2014.

 Pensions & Savings highlights:

  • Radical reform of pensions, effectively introducing flexible drawdown for all defined contribution schemes.
  • Flexible drawdown minimum income requirement reduced to £12,000 from £20,000.
  • Maximum capped drawdown income increased from 120% to 150% of max Government Actuarial Department rate.

 

Click here for our full commentary


Accounting News & Insights

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Spring Budget 2014 Highlights & Our Commentary

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