Although the budget was, officially, held on 19th March, the Government had already issued the majority of the clauses in draft form. However, there were some updates, together with some new proposals, announced in the budget.
- The main proposals, which are still subject to amendment, were:
- The starting rate band for savings will be increased from April 2015 and the current 10% tax rate reduced to nil.
- Individual Savings Accounts are to be simplified by merging the cash and stocks ISAs together with a significant increase in the investment limit from 1 July 2014.
- Radical changes are to be made to the pensions regime including removing the restrictions on access to pension pots so there will no longer be a requirement to buy an annuity.
- The Annual Investment Allowance is to be doubled to £500,000 until 31 December 2015.
- An increase will be made in the R&D tax credit available to loss making SMEs to 14.5%.
- Those using tax avoidance schemes may be required to pay tax upfront.