UK Presents New Budget

March 20, 2014 Taxation in UK

Chancellor of the ExchequerLONDON – In 2014 taxpayers in the UK will be paying less taxes, in line with the new tax policy outlined by the government in the budget for the coming financial year.

On March 19th the Chancellor of the Exchequer of the UK George Osborne presented the national budget for the 2014 year, announcing a slew of economic and political changes aimed at making corporate taxes more competitive and creating a simple and fair tax system in the country, while continuing to achieve strong economic growth and reduce the negative effects in the national economy.

In his presentation the Chancellor confirmed that in order to fulfill the policy objectives and achieve further economic growth the government would need to implement several different tax changes over the course of the year.

One of the main changes planned by the government to be implemented in the current financial year is a substantial increase of the tax free income threshold for individual taxpayers, which will rise by GBP 500 to a total of GBP 10 500.

The government will also revamp the Individual Saving Account (ISA) system, in order to allow waive any tax obligations on cash savings and stock investments of up to GBP 15 000 held by an individual.

In an effort to address the problem of “chronic underinvestment” in the national economy, the current tax free business investment allowance of GBP 250 000 will be hiked to GBP 500 000.

Several other popular measures will be implemented during the course of this as an answer to strong negative public opinion, including cutting the tax rate on bingo halls from 20 percent to 10 percent, reducing the duties on beer by 1 percent, freezing fuel duties at their current level, and reducing air passenger duty on long-haul flights in and out of the UK.

Photo by: Lee Davy