A summary of NEW measures from Budget 2014 and those previously announced in the 2013 Autumn Statement.
Income tax
From 2014/15
- Personal allowances and rates as previously announced, see Tax Data.
NEW from 2015/16
- Personal allowance raised to £10,500
- Basic rate limit £31,785
- Transferable married couples £1,050 allowance for basic rate taxpayers
- 0% starting rate for savers up to £5,000 of savings income
- Starting rate reduced to 0%
- Consultation on personal allowances for non-residents
Pensions
From 2014/15
- Planned reduction in annual allowance to £40k and lifetime allowance to £1.25m, see Pensions: tax rules and planning.
- NEW from 27 March 2014 those retiring with small pensions of up to £30,000 may take the whole as cash (limit raised from £18,000)
From 2015/16
- NEW pensioners have the choice of taking their pension as cash, or a quarter as cash as a tax-free lump sum, or purchasing an annuity.
Partnership measures
From 2014/15
- To remove the presumption of self-employment for limited liability partnership (LLP) partners.
- To counter the manipulation of profit/loss allocations (by both LLPs and other partnerships) to secure tax advantages.
- To counter tax-motivated disposal of assets through partnerships
- See
Social investment relief
From 2014/15
- Income tax relief at 30% on investment by individuals into qualifying social enterprises.
Seed investment relief
- NEW the relief becomes permanent (it was previously to end in 2015).
Corporation tax
- Main rate falls to 21% in April 2014
- Main rate falls to 20% in April 2015
Capital allowances
- NEW the Annual Investment Allowance increases to £500,000 from £250,000 on 1 or 6 April 2014 to 31 December 2015.
- Business Premises Renovation Allowance (BPRA) from April 2014 time limit for works increases to 36 months and limiting proposals for integral features widened.
- Low emission vehicles, from 2015/16 extension of the 100% allowance until 2018
Research & development
From 2014/15
- NEW Increase in R & D payable credit to 14.5% from 11% for loss-making SMEs.
- See R & D relief
Enterprise Zones
- 100% Enhanced Capital Allowances available until March 2020.
- See Enterprise Zones
Theatre tax relief
- NEW consultation on a new corporation tax relief for theatrical productions and touring theatrical productions.
Employers and employees
From 2014/15
- Employment allowance: £2,000 allowance on employers NICs designed to help small firms
- Tax free employment beneficial loans: increase to £10,000
- RTI: HMRC relax filing requirements for smaller employers until 5 October 2013
- Employee share schemes: SIP free shares limit increase to £3,600, partnership shares to £1,800
- Measures to combat PAYE avoidance by use of false self employment for both onshore and offshore intermediaries.
- Car and van fuel benefit to increase to £21,700 and £581.
- Car benefit % increase by 2%.
- Van benefit to £3,090.
2015/16
- Car and van benefits to rise by inflation
- Zero emission vans continuation of favourable treatment
Capital Gains Tax
- NEW From 19 March 2014: amendments to rules to prevent claims for roll-over relief on the reinvestment into an intangible fixed asset.
- NEW From July 2014 (date of Royal Assent) payment entitlements under the new agricultural subsidy Basic Payment Scheme qualify for roll over relief.
- Annual exempt amount 2014/15 £11,000 (trustee rate published as £5,550)
Stamp duty
- NEW Reduction in threshold for 15% rate on the purchase of high value dwellings non-natural persons to £500,000 from £2 million from 20 March 2014.
- NEW ATED two new bands: from April 2015 £1 million, from April 2016 £500,000
VAT
- NEW fuel scale charge from 1 May 2014.
- Thresholds: registration £81,000, deregistration £79,000.
Tax avoidances schemes
- Non-domiciled individuals: measures to prevent avoidance in dual contracts, from April 2014.
- High-risk promoters: further information requirements under DOTAS, from July 2014.
- Users of failed avoidance schemes: requirement to amend returns, from July 2014.
- NEW existing DOTAS users, failed tax scheme users and GAAR counteraction targets; HMRC is given the power to request that any disputed tax is paid upfront, applies from July 2014 but will be retrospective and so applies to current cases.
Others
- NEW 1p off the price of a pint of beer
- NEW Bingo duty reduced to 10% from 20%
- NEW increased rate of machine games duty for expensive games from April 2015
- NEW powers to collect debts of £1,000 or more directly from tax and tax credits bank accounts.
- Childcare: new scheme from 2015 worth up to £2,000 per year.