Budget 2014

20th March 2014

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We are delighted to announce the publication of our in depth analysis of the Chancellor’s Budget announcement for the 2014/15 fiscal year.  This can be downloaded by clicking here.

There was little in the way of surprises in the budget speech with most of the measures already being announced in the Autumn Statement in December 2013 or in the budget statement in March 2013 but the main winners were savers and pensioners who, having suffered over the last few years due to the low interest rates, were prime candidates for some good news given that there is an election on the horizon in 2015.

Some of the key points to arise from George Osborne’s budget speech were as follows:

Perhaps the biggest surprise of the Chancellor’s speech relates to the overhaul of the rules regarding the drawdown of pension benefits.  Various thresholds and limits are being increased from 27 March 2014 but in addition the requirement to purchase an annuity will be removed altogether from April 2015.  This means that in future pensioners can potentially drawdown their entire pension pot in a lump sum with the drawdown being taxed at their marginal tax rates rather than the current punitive 55% rate.  This will bring a high level of flexibility to defined contributions pension schemes which is good news for most people.

As always the devil will be in the detail, especially in relation to the pension changes, but there was little in the headline announcements yesterday to cause concern for most individual taxpayers or businesses.  If you have picked up anything in the Budget coverage that you would like to explore further then by all means give us a call and we shall be happy to discuss the relevant points with you.

Link:  JMT Budget Briefing  Gov.Uk Budget Site

Posted – 20/03/2014