The Budget 2014 - A Summary

The Budget 2014 - A Summary

Budget 2014

20/03/2014

A summary of key announcements made in the Chancellor's Budget on 19 March 2014.

Key Private Client tax announcements

Many of the announcements in the 2014 Budget had been pre-empted in the December 2013 Autumn Statement. The key new announcements made in the 2014 Budget include far-reaching amendments to the way people access their pension savings and important changes to individual savings accounts. In the Chancellor's words, Budget 2014 was very much a budget for savers.

This document contains a summary of the key announcements relating to Private Clients. For business tax related announcements, see: Budget 2014--Lexis®PSL Tax analysis.

Income tax

Income tax rates and thresholds

Income tax rates and personal allowance Tax rate 2013-14 Tax Year 2014-15 Tax Year 2015-2016 Tax Year
Personal allowance for those whose income does not exceed £100,000* ** 0% £0–£9,440 £0-£10,000 £0–£10,500
Basic rate 20% Up to £32,010 Up to £31,865 Up to £31,785
Higher rate 40% £32,011–£150,000 £31,866–£150,000 £31,786-£150,000
Additional rate 45% Over £150,000 Over £150,000 Over £150,000

* This table only includes the personal allowance applicable to those born on or after 6 April 1948. The personal allowance for those born between 6 April 1938 and 5 April 1948 remains unchanged at £10,500 and the personal allowance for those born before 6 April 1938 remains unchanged at £10,660.

** There is a starting rate for savings income only. The starting rate limit for savings is £2,790 for 2013-14 and will increase for £2,880 for 2014-15. If an individual’s taxable non-savings income exceeds the starting rate limit the

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