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Budget: A breakdown of what today’s announcements mean for you

George Osborne delivers his annual Budget statement.

George Osborne delivers his annual Budget statement.

BUDGET AT A GLANCE:

ECONOMY

• Economy grew by ‘three times as much’ as forecast 0.6 per cent in 2013.

• Borrowing expected to be £108billion this year - £12billion less than forecast a year ago.

WELFARE & TAX AVOIDANCE

• People signed-up to disclosed tax avoidance schemes to be required to pay their taxes up front.

• Tax on homes owned through a company to be extended from residential properties worth more than £2million to those worth more than £500,000. Residential property worth more than £500,000 bought through corporate envelope to be liable to 15 per cent stamp duty.

• Compliance checks on migrants claiming benefits they are not entitled to to save almost £100million.

• Inheritance tax waived for emergency services personnel who ‘give their lives protecting us’. VAT waived on fuel for air ambulances and inshore rescue boats.

BUSINESS

• Lending for exporters doubled to £3billion and interest rates on that lending cut by one third.

• Reform of air passenger duty so all long haul flights carry the same tax rate as currently charged for flights to USA.

• Housing policies to support more than 200,000 new homes.

• Additional £140million made available for repairs and maintenance to flood defences. Additional £200million for potholes.

• Mr Osborne said he was ‘determined’ that the HS2 rail link should go ‘further north faster’.

• Business rate discounts and enhanced capital allowances in enterprise zones extended for further three years

• The 2 per cent increase in company car tax to be extended to 2017 and 2018.

DUTIES

• Fuel duty rise planned for September ‘will not take place’.

• Duty on fixed odds betting terminals increased to 25 per cent, horse racing betting levy extended to offshore bookmakers

• Tobacco duty to rise by 2 per cent above inflation, and the escalator extended for the rest of the next Parliament.

• Alcohol duty escalator scrapped, so taxes will rise in line with inflation except for on whisky and other spirits

• Duty on ordinary cider frozen. Beer duty cut by 1p a pint.

PERSONAL TAXATION & SAVINGS

• Personal tax allowance to be raised to £10,500 next year, resulting in £800 income tax reduction for typical taxpayer.

• Transferable tax allowance for married couples to rise to £1,050.

• Cash and stocks ISAs to be merged into single New ISA with annual tax-free savings limit of £15,000 from July 1.

• Cap on Premium Bonds to be lifted from £30,000 to £40,000 in June and £50,000 in 2015

PENSIONS

• Reform of taxation of defined contribution pensions to help 13million people from March 27.

• Tax on cash taken out of pension pot on retirement to be reduced from 55 per cent to 20 per cent.

• All tax restrictions on pensioners’ access to their pension pots to be removed, ending the requirement to buy an annuity. • • • • Abolition of 10p starting rate of tax on income from savings.

 

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