Income Tax and National Insurance – please see our pre-budget update.
Corporation Tax – from 1.4.14 the small companies rate remains at 20% (on the first £300k of profits). The large companies rate drops from 23% to 21% from 1.4.14, and 21% to 20% from 1.4.15. Large companies are those where profits exceed £1.5m. There are marginal rates of tax on profits between £300k and £1.5m.
VAT – from 1.4.14 the registration limit increases from £79k to £81k.
Capital Allowances – the annual investment allowance will increase from £250k to £500k in April 2014 but is planned to drop to £25k in January 2016. Writing down allowances remain at 18% (main rate including cars with 96-130g/km) and 8% (lower rate including cars over 130g/km). Cars up to 95g/km will attract 100% first year allowance.
Capital Gains Tax – the annual allowance for individuals increases to £11,000 from April 2014. The CGT rates remain the same at 18% (or 28% for gains above the basic rate band). The entrepreneurs relief rate stays at 10% for the sale of businesses for the first £10m of lifetime gains.
Inheritance Tax – the nil rate band of £325k (£650k for married couples and civil partners) remains the same. The rate of tax remains at 40%.
Business Mileage – rates remain the same at 45p/mile for the first 10,000 miles and 25p/mile on the excess.
ISA’s – from 1.7.14 the limit will be £15,000 per annum.
Pensions – from April 2015 individuals will not have to buy an annuity and will have freedom in how they access their pension pot.
