Global

Details

  • Service: Tax, Global Indirect Tax, Global Mobility Services, International Tax
  • Type: Regulatory update
  • Date: 3/19/2014

United Kingdom - Budget 2014 speech presented today 

March 19:  The UK Chancellor today delivered his budget speech to Parliament, setting out in detail how the government will proceed with respect to the economy and concerning taxation.

Read the Budget 2014 [PDF 2.05 MB].


The Chancellor said the budget was for “makers, doers and savers.”


  • For manufacturers, the export finance measures and the proposal to extend and double the annual investment allowance to £500,000 means the vast majority of businesses would receive full relief for their capital investments.
  • Measures to reduce energy costs would benefit all businesses, as would the freezing of fuel duty.
  • For small, loss-making businesses the research and development (R&D) credit would increase from 11% to 14.5%.
  • There are proposals to increase the personal allowance which, for the first time in this parliament, would be allowed to flow through to higher rate taxpayers, contrary to pre-budget predictions.
  • Tax restrictions on pensioners accessing their pension pots would be removed, ISAs would become more flexible, and the allowance would be increased to £15,000 per year, plus the 10% “savings rate” of tax would be repealed—meaning no tax would be paid on the first £5,000 of savings.

The KPMG member firm in the UK has provided comments on these and other provisions. Read the KPMG webpage: Chancellor’s Budget - 19 March 2014.


Certain tax provisions were announced in advance of today’s budget speech. Read the KPMG webpage: Key measures already announced 2014




©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

 

Share this

Share this

Subscribe

Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)


Already a Subscriber? Login


Not a member? Subscribe now