It’s been a week since George Osborne gave his Budget 2014 speech, announcing a host of changes which will affect our finances in a number of ways.
Here, we list all the key announcements that will affect consumers in chronological order, starting with those that will be introduced first.
Go further: Budget 2014: The highlights – an in-depth summary of the major changes
Pension changes – March 27 2014
A relaxation of rules regarding drawdown limits and lump sum withdrawals.
Go further: Income drawdown explained – learn more about how drawdown works
The 2014/15 tax year
The new tax year begins on 6 April 2014 and will herald the introduction of many new tax and benefit rates.
Allowance rises – April 6 2014
The personal tax allowance rises to £10,000. The Isa limit jumps to £11,880, while the capital gains tax allowance limit increases to £11,000.
Go further: Income tax explained – find out about how much you need to pay
Benefits increases – April 6 2014
Child benefit and local housing allowance and child benefit both rise by 1%. The state pension increases to £113.10 a week.
Go further: State pension explained – all you need to know about the weekly state pension
Duties altered – April 6 2014
Beer duty cut by 1p a pint. Tobacco duty to rise 2% above inflation. Bingo duty halves to 10%. Duty on fixed-odds betting terminal up to 25%.
Pension tax relief allowance drops – April 6 2014
The allowance will fall to £40,000 per year and £1.25 million overall.
Go further: My retirement: what do I need to know? – get set for retirement with our hub
Later this year
Premium Bond limit – June 1 2014
Increases to £40,000 with extra £1 million jackpot to play for.
Go further: Premium bonds explained – how do these savings work?
New Isa to be introduced – July 1 2014
£15,000 limit can be filled with either cash or stocks & shares.
Go further: Best rate cash Isas – find the top rate for your savings
Pensioner Bonds introduced – January 1 2015
Market-leading over-65s product with £10,000 limit.
Air Passenger Duty – April 1 2015
All long-haul flights will charge band B tax.
The 2015/16 tax year
The Chancellor announced a host of measures that will come into effect in the next tax year.
More pension changes – April 6 2015
The government aims to give pensioners complete access to their pots.
Go further: What the pensions shake-up means for you – a round-up of the proposed changes
Tax bands – April 6 2015
Personal allowance rises to £10,500. Higher-rate tax starting figure rises to £41,865. Transferrable marriage allowance jumps to £1,500.
10% savings tax rate abolished – April 6 2015
The 0% rate will extend to maximum of £5,000.
Go further: Tax on savings and investments – understand when you do and don’t need to pay tax
Welfare cap introduced – April 6 2015
The cap was set at £119bn rising with inflation.
Premium Bond limit – April 6 2015
The limit will increases to £50,000.
New IHT exemption – April 6 2015
All emergency services staff who die in service will be exempt.
Go further: Inheritance tax explained – do you need to pay it?
Increased childcare tax breaks – Autumn 2015
A 20% tax break will apply to first £10,000 of childcare costs.
New £1 coin – 2017
A new twelve-sided coin will combat counterfeiting.
Help to Buy extended – 2020
Equity loans scheme will now last until end of decade.
Go further: Help to Buy explained – get to grips with the government’s mortgage scheme
- What the pensions shake-up means for you – a round-up of the proposed changes
- Budget 2014 Hub – all the latest news and speculation
- What is the Budget? – our short animation explains all