Budget Summary 2014 - page 8

of securities, including certain retail bonds with fewer than five
years to maturity and core capital deferred shares issued by building
societies. Peer-to-peer lending will also be an eligible investment.
The amount that can be subscribed to a Junior ISA or child trust
fund in 2014/15 will be increased to £4,000 from 1 July 2014.
Enterprise investment schemes (EISs) and venture
capital trusts (VCTs)
Companies benefiting from renewables obligation certificates
(ROCs) and/or the renewable heat incentive (RHI) scheme will be
excluded from EISs, SEISs and VCTs with effect from Royal Assent to
the Finance Bill 2014. Investments in VCTs that are conditionally
linked in any way to a share buy-back, or that have been made
within six months of a disposal of shares in the same VCT, will also
be excluded from qualifying for new tax relief with effect from
6 April 2014.
Investors will be able to subscribe for VCT shares via nominees with
effect from Royal Assent. For shares issued on or after 6 April 2014,
VCTs will be prevented from returning capital that does not relate
to profits on investments within three years of the end of the
accounting period in which shares were issued to investors. From
6 April 2014, HMRC will be able to withdraw tax relief if VCT shares
are disposed of within five years of acquisition, notwithstanding the
general time limits for making assessments to recover tax.
Seed enterprise investment scheme (SEIS)
The SEIS will be made permanent. The associated capital gains tax
reinvestment relief will also become a permanent feature of SEIS,
providing relief on half the qualifying gains that individuals reinvest
in SEIS-qualifying companies in 2014/15 or subsequent years.
Stamp duty reserve tax (SDRT)
The SDRT charge on unit trusts and open-ended investment
companies will be abolished from 30 March 2014. An SDRT charge
will remain for non pro-rata in specie redemptions. From 28 April
2014, SDRT and stamp duty on shares in companies quoted on
recognised growth markets (eg AIM) will also be abolished.
19 MARCH 2014
page 8
The ISA limit will rise to
£15,000 in July 2014.
So a
couple can then invest up
to £30,000 in a tax free
plan in cash or shares.
I,1,2,3,4,5,6,7 9,10,11,12,13,14,15,16,17
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