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Budget 2014: key points

Chancellor George Osborne’s 2014 Budget sets out the Government’s ongoing plans to build the resilience of the UK economy.

 

Osborne delivered his Budget statement to Parliament last week and amongst the main changes were a number of decisions that will help to support firms, reduce taxes and boost saving.

 

The UK’s GDP has been predicted to grow by 2.7 per cent over the course of this year and 2.3 per cent in 2015, increasing again to 2.5 per cent in 2018. The Government is keen to build on this recovery with the 2014 Budget.

 

Businesses across the country will be helped to invest, export and create jobs, with direct Government lending to promote exports doubled to £3 billion. Interest rates on that lending will be slashed by a third, while business rate discounts and greater capital allowances in enterprise zones will both be extended for three years.

 

In terms of taxation, the point at which people start paying income tax will be raised to £10,500, with the threshold for 40 pence incomes tax to rise from £41,450 to £41,865 next month, with a further 1 per cent rise to £42,285 in 2015.

 

The 15 per cent Stamp Duty Land Tax rate on residential properties purchased through a corporate envelope will be extended to include all properties over £500,000 (previously only properties over £2 million).

 

Cash and shares Isas will be merged into a single New Isa from 1 July this year, which will see an annual tax-free savings limit of £15,000. Savers will also benefit from the abolition of the 10 pence tax rate.

 

In terms of housing and infrastructure, the Budget unveiled an extension to the Help to Buy equity scheme for new-build homes to 2020, with support for the building of more than 200,000 new homes.

 

An extra £140 million has been set aside for flood defence repairs and maintenance, while the construction of a new ‘garden city’ in Ebbsfleet, Kent, was also announced.

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