Budget 2014 – Key announcements

25 March 2014

Budget 2014 – Key announcements

Income Tax and national insurance contributions (NICs)

Income tax

Income tax rates will remain unaltered for the tax year 2014/15, but as previously announced:

  • The personal allowance will increase to £10,000 from 6 April 2014 (currently £9,440 for the tax year 2013-14)
  • From 6 April 2015 the personal allowance will increase to £10,500
  • Also, from 6 April 2014, the limit for the basic rate will be reduced to £31,865 (from £32,010) with the higher rate threshold increasing to £41,865 (from £41,450)
  • A further increase to £42,285 from 2015

The transferable tax allowance rate will link to the personal allowance from the tax year 2015/16 for married couples and civil partners increasing to £1,050.

NICs

NIC rates will remain unaltered for the tax year 2014/15

  • The primary threshold will increase to £7,956 from 6 April 2014 (currently £7,755 for the tax year 2013/14)
  • From 6 April 2014 the upper earnings limit will increase to £41,865 in line with the higher rate threshold for income tax

Announced previously, from 6 April 2014 all businesses and charities will be eligible for a new £2,000 Employment Allowance to reduce their employer NIC liability.

Capital gains tax (CGT)

The CGT annual allowance for the tax year 2014/15 will increase to £11,000 (currently £10,900 for the tax year 2013/14) with CGT rates unchanged.

The New ISA (NISA)

Good news for share plan savers, the government have announced the introduction of the NISA, merging the current cash and stocks and shares ISA into one and increasing the annual limit by £3,480 to £15,000.

From 1 July 2014 savers will have the option to save all their NISA allowance in either a cash or stocks and shares ISA, or a variation of both, enabling maturing share plan accounts to maximise their tax saving opportunities.

Factsheets on the key announcements can be found by visiting the HMRC Website.

If you have any questions please do not hesitate to contact me.

Louise

Louise Drake | National Sales Manager | 01274 263101

Help and Support

Need help?

For general enquiries, call the YBS Share Plans helpline on:

Tel: 0345 1 200 300

Tel: +44 1274 353 015 (Calls outside UK)

Sharesave lines are open Monday to Friday 8:30am to 5:30pm and Saturday 9:00am to 1:00pm.

Share Incentive Plan lines are open Monday to Friday 9:00am to 5:00pm.

All communications with us may be monitored/recorded to improve the quality of our service and for your protection and security. Calls to 03 numbers are charged at the same standard network rate as 01 or 02 landline numbers, even when calling from a mobile.

Security

Your Personal Details are secure

Learn how we use and protect your personal data

To see more information Visit our Security Centre

Case Studies thumbnail

Case Studies

Examples of tailored customer communications.

  • Dynamic marketing and communication strategies
  • Innovative and forward thinking
View Case Studies
Awards thumbnail

YBS Awards

Find out more about YBS Group and the awards they have won.

More about Awards