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.