19 March 2014
Press ReleasesThe Chancellor?s 2014 Budget for doers, makers and savers provides individuals, and particularly those in retirement, with much to cheer. There are also valuable reliefs for businesses, says Thames Valley accountants and business advisers James Cowper Kreston.
Ian Miles, Partner and Head of Private Client at Thames Valley accountants and business advisers James Cowper Kreston said: “Our pensions are singularly the largest saving we all make. The decision by the Chancellor to give greater freedom over our pension pots is particularly welcome.
“All tax restrictions on pensioners' access to their pension pots is to be removed, ending the requirement to buy an annuity. Many will continue to purchase an annuity for the security they offer, but the flexibility is now there. And the taxable part of the pension pot as cash on retirement is to be charged at the normal rate, not 55%.”
And it is not just Bingo playing pensioners that will benefit. “The combining of the cash and stocks and shares ISAs and an increase in ISA thresholds to £15,000 (adult ISAs) and to £4,000 on junior ISAs will be welcomed by those families with savings,” adds Ian.
Businesses in the Thames Valley will also find comfort in the 2014 Budget, although many of the most helpful measures where announced separately outside of the Budget, including the two per cent reduction in Corporation Tax to 21 per cent and the abolition of National Insurance for employees aged under 21.
Sharon Bedford, Partner in James Cowper Kreston’s Business Tax team said: “The Chancellor has given real help for pre-revenue early-stage businesses by extending R&D tax credits. Research we have conducted amongst our own clients consistently rank R&D tax credits as singularly the most help tax relief from the Government.
“All businesses will benefit from the reduced charged for energy, greater help with export finance and from the investment allowance. It is fair to say that this is a good Budget for Thames Valley businesses.”
