In Detail: The Budget Report | AAG Wealth Management

In Detail: The Budget Report

Posted: April 28, 2014

Following the Chancellor’s annual Budget statement, you can read the full Budget Report 2014 which sets out the main changes, key facts and figures and includes some useful tips for your financial planning.

In Summary
Pronouncing it a Budget for “makers, doers and savers”, George Osborne put the interests of savers and pensioners at the heart of his measures. These were this year’s Budget highlights:

  • Radical reform of pensions, effectively introducing flexible drawdown for all defined contribution schemes.
  • Major relaxations to the rules for turning small pension pots into cash lump sums.
  • Reform of ISAs, with a new £15,000 annual contribution limit and full transferability in both directions between stocks and shares and cash.
  • The savings tax rate reduced from 10% to 0% and the savings rate band increased to £5,000, both from 2015/16.
  • The personal allowance is increased to £10,000 for 2014/15 and to £10,500 for 2015/16, with small reductions in the basic rate band for both years.
  • The transferable tax allowance for married couples is set at £1,050 for 2015/16.
  • The annual investment allowance (AIA) is doubled to £500,000 and there is a one-year extension of the higher AIA to 31 December 2015.
  • Seed Enterprise Investment Scheme (SEIS) is made permanent and new rules are introduced for Venture Captial Trusts (VCTs) and Enterprise Investment Schemes (EIS).

If you’d like to discuss how the budget personally affects you, and review your financial plans accordingly, please do contact your AAG Wealth Manager.

 

The information contained is correct as at the date of the article. The information contained does not constitute investment advice and is not intended to state, indicate or imply that current or past results are indicative of future results or expectations. Where the opinions of third parties are offered, these may not necessarily reflect those of AAG.

Alexander Associates Group (AAG) is a holistic Wealth Management group and provider of a wide range of complementary services. The wealth management advice, for both individuals and corporates, is provided by AAG Wealth Management, a Principal Partner Practice of St.  James’s Place Wealth Management. Other services offered by AAG fall outside of wealth management advice and are separate and distinct to the services offered by St. James’s  Place. They are not covered by the St. James’s Place guarantee*, which is solely reserved  for wealth management advice provided by representatives of AAG Wealth Management.

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