George Osborne has delivered his fourth budget as Chancellor of the Exchequer, here’s a summary of the key points that could have a direct effect on your personal finances.
The personal income tax allowance will rise to £9,440 for the 2013/2014 tax year and further to £10,000 in the 2014/2015 tax year. You can find out how the 2013/2014 increase could affect you by using the interactive tax calculator.
The Chancellor announced further measures to curb tax evasion, which he says will bring £3billion in currently unpaid taxes.
From 2015 parents with children under five years old will be able to claim back tax worth up to £1200 per child, this will include children up to 12 by 2020. There will also be increased support for families with children who are on universal credit.
The flat-rate pension of 144 per week will be introduced earlier than expected in 2016.
Public sector pay
The cap on pay increases, set at 1% will continue until the 2015/2016 tax year comes to an end, but this cap will not apply to the military.
A newly announced “Help to Buy” scheme will offer £3.5bn worth of government loans of up to 20% of the value of a property, as long as the buyer can put up a further 5% and the purchase price of the property does not exceed £600,000. These loans will be free from interest for the first five years.
In addition there will be a mortgage guarantee to support £130bn worth of lending to encourage mortgage provider to lend to those struggling to build up a deposit.
There will be a cap on social care costs from 2017 to protect savings above £72,000 and the threshold for means-tested assistance will rise to £118,000 for £23,000.
Good news for business as corporation tax is set to fall to 20% from April 2015, with the capital gains tax holiday also set to be extended.
The first £2000 will be taken off employer National Insurance, meaning 450000 small businesses will pay no National Insurance at all. This will be offset by a increased bank levy of 0.142pc.
Help for Equitable life policy holders will be extended to those who purchased an Equitable Life with-profits annuity prior to 1992 with payments of £5000 plus an additional £5000 for those on lower incomes.
The 3p fuel duty rise scheduled for September 2013 has be cancelled, while beer duty is to be cut by 1p.