Spring Budget Statement 2014

In order to keep you up to date with all of the announced changes in the March Budget, we have put together a ’2014 Budget Report Summary’.

Click here to read the full summary.

Here are some of the elements we identified as most relevant to our clients:

Annual Investment Allowance (AIA) doubled to £500,000 and extended to the end of 2015.

Full rate of corporation tax is now 21%.

Research and development (R&D) tax credit payable to loss-making SMEs to increase from 11 per cent to 14.5 per cent from April 2014.

The choice of tax efficient investment vehicles grows wider every year with SEIS, EIS, VCT and now SI Relief. We expect the changes announced today to drive own the cost of these vehicles and refocus them on fuller risk investments.

New rules aimed at certain industries including recruitment and employment agencies will treat workers as employees rather than self-employed.

Personal tax threshold to increase to £10,500 from April 2015.

40p income tax threshold to increase to £41,865 from April 2014 and then to £42,285 from April 2015.

Cash and shares ISAs to be merged, with tax-free limit increased to £15,000 from 1 July.

Total pension saving taken as lump sum doubled to £30,000, while taxable part of pension pot taken as cash on retirement to be charged at normal income tax rate.

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