Budget 2014 key points and how they will affect you

Budget 2014 key points

Taxation

Personal income tax allowance raised to £10,500 from 2015/16 tax year
Higher rate tax threshold raised to £41,865
15% stamp duty on residential property purchased through a company

Fuel, Alcohol & Tobacco

Beer duty cut by 1p per pint
Fuel duty rise planned for September cancelled
Tobacco duty to rise by 2% above inflation

Housing

Help to Buy extended to 2020
Support for building 200,00 new houses
£200m made available for repairing potholes

Pensions (effective from 27th March 2014)

The amount of pension that can be taken from pension as a lump sum (under trivial commutation) will increase from £18,000 to £30,000
The maximum income that can be taken from capped drawdown each year will increase from 120% to 150% of an equivalent annuity
The level of qualifying income for flexible drawdown will drop from £20,000 per year to £12,000 (and this limit will be removed from 2015 once legislation is passed).
From April 2015 savers will be able to access pension savings as they wish subject to their marginal rate of income tax, rather than the current 55% charge for full withdrawal (again legislation pending).
The age which people can first access their pensions will increase from the current 55 to 57 by 2028
The size of the small pension pot that can be cashed in regardless of your overall pension savings will increase from £2,000 to £10,000
And you can take up to three such small pension pots - currently the limit is two

Savings

10p tax rate on savings to be abolished
From 1st July 2014 a new ISA called the NISA will be launched
It will have a limit of £15,000 and the whole allowance can be invested in cash or stocks and shares or both
ISA's taken out between 6th April and 1st July 2014 will automatically become NISAs on 1st July 2014 and the investment limits will increase to the new £15,000
Junior ISA and Child Trust Fund annual contribution limit will be raised to £4,000 from 1st July 2014

More detailed information on all of the above can be found here

Article Contents

Budget 2014 key points Taxation Fuel, Alcohol & Tobacco Housing Pensions (effective from 27th March 2014)Savings

Damien helps to put you in control

Since 2010 I've been helping people with their personal finances for FREE. Every year we help over 2 million people but that's not enough. Help me help more people by sharing the site with your family, friends and colleagues.
- Damien Fahy, Founder

The material on the Money to the Masses website, 80-20 Investor, Damien’s Money MOT, associated pages, channels, accounts and any other correspondence are for general information only and do not constitute investment, tax, legal or other form of advice.

You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation. Leadenhall Learning (owner of Money to the Masses, 80-20 Investor and Damien’s Money MOT) and its staff do not accept liability for any loss suffered by readers as a result of any such decisions or their use of any information on this site. See full Terms & Conditions, Privacy Policy and Disclaimer.

Money to the Masses is a journalistic website and aims to provide the best personal finance guides, information, tips and tools, but we do not guarantee the accuracy of these services so be aware that you use the information at your own risk and we can't accept liability if things go wrong.

We aim to give you accurate information at the date of publication, unfortunately price and terms and conditions of products and offers can change, so double check first. Leadenhall Learning, Money to the Masses, 80-20 Investor, Damien's Money MOT nor its content providers are responsible for any damages or losses arising from any use of this information. Always do your own research to ensure any products or services and right for your specific circumstances as our information focuses on rates not service.

Past performance is no guarantee of future results. Funds invest in shares, bonds, and other financial instruments and are by their nature speculative and can be volatile. You should never invest more than you can safely afford to lose. The value of your investment can go down as well as up so you may get back less than you originally invested.

We do not investigate the solvency of companies mentioned on our website. We are not responsible for the content on websites that we link to.

80-20 Investor tables and graphs are derived from data supplied by Trustnet. All rights Reserved.

If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use.

**51% of consumers could save £523.47 on their Car Insurance. The saving was calculated by comparing the cheapest price found with the average of the next six cheapest prices quoted by insurance providers on Seopa Ltd’s insurance comparison website. This is based on representative cost savings from August 2024 data. The savings you could achieve are dependent on your individual circumstances and how you selected your current insurance supplier. 51% of consumers could save £222.30 on their Home Building & Contents Insurance. The saving was calculated by comparing the cheapest price found with the average of the next fourteen cheapest prices quoted by insurance providers on Seopa Ltd’s insurance comparison website. This is based on representative cost savings from August 2024. The savings you could achieve are dependent on your individual circumstances. You could pay from £3.35 per month for Pet Insurance. Price per month for cover based on a dog, Penelope, aged 4 months, no known medical conditions, up-to-date vaccinations, and microchipped. Based on quote data provided by Seopa Ltd during August 2024. The quote price you could achieve is dependent on your individual circumstances.

Leadenhall Learning Limited (trading as Money to the Masses) is an introducer appointed representative of Seopa Limited which is authorised and regulated by the Financial Conduct Authority.

Leadenhall Learning Limited (trading as Money to the Masses) is an appointed representative of Wealthify Limited which is authorised and regulated by the Financial Conduct Authority. Money to the Masses acts as an appointed representative for the purpose of promoting Wealthify products and introducing customers to Wealthify.

Leadenhall Learning Limited (trading as Money to the Masses) is an Introducer Appointed Representative of Creditec Limited who is acting as a credit broker and not a lender and which is Authorised and Regulated by the Financial Conduct Authority (FRN: 972716)

As seen on:

Budget 2014 key points and how they will affect you