The Queen made her Budget 2014 speech last week - no surprises - but here is a summary of the main points relevant to doctors.
- Transferable Income Tax Allowance: as announced in the 2014 Budget, from 6th April 2015, spouses will be entitled to transfer 10% of their personal allowance ot their spouse provided they are neither a higher or additional rate tax payer. Over four million couples are expected to benefit.
- Savings Rate of Income Tax: the start rate of income tax which is applicable to savings income will be lowered from 10% to zero and the band extended to £5,000 from April 2015.
- National Insurance Contributions Bill: the purpose of the Bill is to simplify the collection of Class 2 National Insurance Contributions paid by the self-employed and to protect the public revenues by tackling avoidance.
- Individual Savings Accounts (ISAs): the overall subsription limit will be increased to £15,000 from July 2014 and there will be complete flexibility between cash and stocks and shares. The contribution limits for Junior ISAs and Child Trust Funds will also be increased in July 2014 - to £4,000.
- National Savings and Investments (NS&I): January 2015 will see the introduction of the new one and three year fixed rate 'pensioner savings bonds' with an investment limit of £10,000 per product. The final interest rates are to be decided at the Autumn Statement.
- Childcare: tax-free childcare will be launched in Autumn 2015 and rolled out to all eligible families with children under 12 within the first year of the scheme's operation. For every £8 that a parent pays for childcare, the Government will contribute £2. However the level of Government support will be capped and provide parents with savings worth up to £2,000.
If any of these points are of interest to doctors in Bristol - please let me know. Pension summary to follow.