• 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more flexible, and the allowance would be increased to £15,000 per year, plus the 10% “savings rate” of tax would be repealed—meaning no tax would be paid on the first £5,000 of savings.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

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