This year’s Budget came with it’s own slogan: If you’re a maker, a doer or a saver: this Budget is for you.
The Chancellor’s budget speech on Wednesday was an interesting one, with a few surprises (for pensions) and some big bonuses for UK businesses.
The changes benefitting SMEs will include:
- The Annual Investment Allowance (AIA) is going to be increased to £500,000 until the end of December 2015, meaning businesses which purchase plant and machinery (but not cars) equipment will be able to take advantage of a 100% deduction of the cost up to that limit.
- The R&D tax credit is also being increased to 14.5% for SMEs which are currently loss-making.
- By April 2015, the UK’s corporation tax will be 20%, the lowest rate in the entire G7 and joint-lowest in the G20.
- The cost of energy prices for manufacturers will also decrease, with the intention of enabling UK based-manufacturers to remain competitive in the global market.
Amongst the changes for individuals, the tax proposals include:
- The new starting band for savings will be increased from April 2015, through the current rate of 10% will be removed.
- The two types of ISAs (cash and stocks) are going to be merged together, and the investment limit will be increased from 1st July 2014.
- The restrictions on pensions are going to be lifted, much to the surprise of many, allowing pensioners to withdraw however much they like from their pension pots.
Many more of the benefits can be found on the gov.uk website.
