Changes from April 2014
• The tax free personal allowance increases from £9,440 to £10,000 from April 2014.
• The 40% tax band will be £41,865 (was £41,450)
• The £150,000 tax band remains at 45%
• ISA contribution limit to be raised to £11,880 (half of which can be saved in cash)
• Disposals of shares that result in a controlling interest in a company being held by an employee ownership trust will be relieved from CGT
• From October 2014, bonus payments made to employees of indirectly employee-owned companies which are controlled by an employee ownership trust will be exempt from income tax up to a cap of £3,600 per annum
• The government will reduce the final period exemption for CGT for private residence relief from 36 months to 18 months from April 2014
• The Share Incentive Plan annual limits will increase to £3,600 per year for free shares and to £1,800 per year for partnership shares
• The maximum monthly amount that an employee can contribute to Save As You Earn savings arrangements will increase from £250 to £500
• The income tax relief for interest paid on loans to invest in close companies and employee-controlled companies will be extended to investments in such companies resident throughout the European Economic Area
• A 50% business rates relief for 18 months up to the state aid limits for businesses that move into retail premises that have been empty for a year or more will be introduced
• Businesses which move into empty premises between 1 April 2014 and 31 March 2016 will be eligible for the relief
• The doubling of Small Business Rate Relief will be extended for a further year from 1 April 2014
• Individual protection 2014 (IP14) will be introduced as a consequence of the reduction in the lifetime allowance to £1.25 million from 6 April 2014
• Individuals with IP14 will have a lifetime allowance of the value of their pension savings on 5 April 2014 subject to an overall maximum of £1.5 million
• Increase in State Pension age to 68 could come forward to the mid 2030’s, and the State Pension age could increase further to 69 by the late 2040’s
• There will be a new tax relief for equity and certain debt investments in social enterprises with effect from April 2014
• Investments that are conditionally linked in any way to a VCT share buy-back, or that have been made within 6 months of a disposal of shares in the same VCT, will not qualify for new tax relief
• From April 2014 the government will remove the stamp duty and Stamp Duty Reserve Tax (SDRT) charge on purchases of shares in Exchange Traded Funds (ETF) that would currently apply if an ETF were domiciled in the UK
• Further changes to filing and payment dates of for IHT relevant property trust charges will be announced in due course
• There will be funding to support universal free school meals for children in reception, year 1 and year 2 and disadvantaged students in sixth form colleges from September 2014
• From 1 October 2014 a paper tax disc for vehicles will no longer be required
Changes from April 2015
• The 40% tax band will start at £42,285
• From 2015-16 spouses and civil partners will be able to transfer £1,000 of their income tax personal allowance to their spouse or civil partner
• Couples where neither partner is a higher or additional rate tax payer will be eligible to transfer.
• No employer NICs for those under the age of 21 from April 2015, with the exception of those earning more than the Upper Earnings Limit, which is £42,285 a year (£813 per week) in 2015-16.
• In October 2015 there will be a new class of voluntary NICs to allow pensioners who reach State Pension age before 6 April 2016 an opportunity to top up their Additional Pension records.
• CGT on future gains made by non residents disposing of UK residential property to apply, from April 2015. A consultation on how best to introduce the new CGT charge will be published in early 2014
• During 2015-16, HMRC will provide an online service for IHT, reducing administrative burdens for customers and agents.