How the Budget Changes will Impact Owner Managed Businesses
This year’s Budget was pretty political – which is no great surprise given the forthcoming general election in May. There can be little doubt that a number of the Chancellor’s measures were designed to attract voters. Non-pension savers, for example, were offered a new personal savings allowance, which is worth up to £200 a year and are to be given more flexibility and investment options for their ISAs after the election. The Budget is also likely to be good news for existing pension annuity owners, who are to be allowed to sell their income in return for a lump sum.
House prices and the difficulties of getting onto the property ladder are rarely out of the news these days and the Chancellor has proposed to give those who aspire to own their own home a helping hand – a new Help to Buy ISA. This scheme, due to start in August 2015, will see the government provide a £50 bonus for every £200 of monthly savings deposited in this ISA, up to a maximum of £3,000 on £12,000 of savings.
Unfortunately, the Budget can’t all be good news for everyone. Those who have not yet retired received a bit of a blow in the form of a further reduction in the lifetime allowance, which the Chancellor has cut down to £1 million – a measure proposed by the Shadow Chancellor in February.
So, we heard lots of interesting announcements in this Budget but whether these proposals become legislation very much depends on the outcome of the election.
If you do not have time to watch the whole video here is an approximate time line showing at which point in the video various topics are covered:
Introduction – 0 min 10 sec
Personal Tax Allowances – 1 min 35 sec
National Insurance – 10 min 16 sec
Rates of Tax on Dividends – 10 min 48 sec
National Insurance Contributions – 13 min 14 sec
Corporation Tax Rates & Allowances – 18 min 02 sec
Capital Gains Tax & Entrepreneur’s Relief – 24 min 10 sec
Inheritance Tax – 33 min 24 sec
Stamp Duty Land Tax & Enveloped Dwellings – 35 min 21 sec
VAT Registration – 40 min 06 sec
ISA’s – 41 min 46 sec
Pension Matters – 44 min 41 sec
Dispensations – 47 min 25 sec
Other Matters – 49 min 17 sec
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