Budget Summary 2014 - page 1

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
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
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 capital trusts (VCTs) and enterprise investment
schemes (EISs).
Higher premium bond investment limits and, from January 2015, a new
series of National Savings & Investments fixed rate bonds for people aged
65 and over.
This summary has been prepared very rapidly and is for general information only. The proposals are in any
event subject to amendment before the Finance Act is passed. You are recommended to seek competent
professional advice before taking any action on the basis of the contents of this publication.
19 MARCH 2014
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