The new 12-sided pound coin is a Budget eye-catcher, and here are 12 more highlights picked out by Angela Haig, partner at Henderson Loggie.
1Middle income families will benefit from the increased personal allowance with the first increase in the higher rate tax threshold for years. Higher rate tax will be payable on income over £41,865 in 2014/15 and £42,285 in 2015/16.2From April 6 2015 those with income below £15,500 will not pay any tax on their savings income due to the increase in the starting rate on savings income from £2,790 to £5,000 and a reduction in the rate of 10% to 0%. Good news for over-65s who can make use of the new Pensioners Savings Bonds, which offer 4% on savings of up to £10,000.3ISA becomes NISA. More flexible and increase in savings limit to £15,000 per annum. The Junior ISA savings limit will increase to £4,000.4Pension liberation! Radical changes to pension legislation to give pensioners more control and flexibility over their pension funds and no need to purchase an annuity.5The duty on whisky, and other spirits, has been frozen, providing a boost to Scotland’s important spirit manufacturing base, as well as the hard-pressed consumer who will need a dram while contemplating what to do with their pension fund.6Bingo Duty, due on the profits of bingo promoters, is halved from 20% to 10%. While good for the sector, it is thought the saving is unlikely to be passed on to bingo players directly in reduced participation fees. We don’t recommend gambling your pension fund at the bingo hall.7HMRC gets a budget increase to tackle tax avoidance. Expect to see increased numbers of tax checks and increased scope of the disclosure regulations. Taxpayers who have participated in schemes disputed by HMRC will have to pay back the tax saving until the dispute is resolved.8For small and medium sized companies carrying out research and development the repayable tax credit on expenditure after April 1 2014 when losses are surrendered will increase from 11% to 14.5%, improving cash flow.9The Employment Allowance comes into effect from April 6 2014. Although announced last year, this will give eligible employers a reduction of up to £2,000 in Class 1 NIC liability each year.10From April 2015, employers will no longer have to pay NIC taking on workers under the age of 21. It will not apply beyond the upper earnings limit of £42,285 but, together with more apprenticeships and grant funding, it should help reduce the high level of youth unemployment.11Businesses investing in plant and machinery saw a temporary increase in tax allowances from £25,000 to £250,000 for expenditure in the period from January 1 2013 to December 31 2014. The allowance will increase from £250,000 to £500,000 from April 2014 and will be extended to 31 December 2015.12Various measures are being introduced to reduce the energy costs for our energy-intensive manufacturing industries. These measures will also result in reduced energy costs for smaller businesses and households. A few more pounds to spend on that glass of whisky or trip to the bingo!