There were a few surprises among the array of consulted and well-trailed announcements in the Chancellor’s speech.
- The personal allowance will increase to £10,000 in 2014/15.
- The higher rate (40%) tax threshold will increase by £415 to £41,865.
- A transferable tax allowance of £1,000 will be introduced for married couples and civil partners from April 2015.
- From 6 April 2015 employers will no longer pay Class 1 national insurance contributions on earnings paid up to the upper earnings limit to any employee under the age of 21.
- In October 2015 a new class of voluntary NICs (3A) will be introduced to allow pensioners who reach state pension age before 6 April 2016 to top up their Additional Pension entitlement.
- The overall annual individual savings account (ISA) subscription limit for 2014/15 will rise to £11,880, of which £5,940 can be invested in cash.
- The final exemption period for private residence relief will be halved to 18 months from April 2014.
- From April 2015, capital gains tax will apply to future gains on residential property owned by non-resident individuals.
- Legislation to block venture capital trust (VCT) enhanced buyback schemes will take effect from April 2014.
- New ‘simplified’ IHT rules for trusts will be introduced from April 2015, following further consultation.
For more information or if you have any concerns please contact Vincent & Co.