CHANCELLOR George Osborne has unveiled his fifth Budget – and good news is in store for hard working families and the licensed trade.
Not only has he delivered cuts to the price of beer a freeze on cider duty, he has also cut tax for bingo halls which is hoped will bring bigger prizes.
The ‘working peoples’ Budget will also help the middle classes as every voter will get a £100 tax cut.
But he said the job to see a recovery in the economy “is far from done” and told MPs that Britain still does not save nearly enough.
- Income tax will not start until you earn £10,500
Bingo duty will be halved to 10 per cent
- Income tax threshold of 40p to rise from £41,450 to £41,865 next month and then a further one per cent in 2015 to £42,285.
- Members of the emergency services will no longer pay inheritance tax.
- Homes owned through companies – tax will be extended to residential properties worth more than £500,000. The previous value was £2m.
-Good news for savers. A new Isa will be launched with cash and shares to be merged into a single Isa with an annual tax free savings limit of £15,000 from July 1.
-Savers 10p tax rate will be abolished.
-Premium Bonds cap to rise from £30,000 to £40,000 in June and £50,000 next year.
-The requirement to buy an annuity will end and all restrictions on pensioners access to their pension pots will be lifted.
-The taxable part of pension pot taken as cash on requirement will be charged at normal tax rate – down from 55 per cent.
-People will now be able to take a lump sum from pension savings up to £30,000.
Fuel, Alcohol and Tobacco
1p cut in duty on a pint of beer.
Cider duty frozen.
Planned fuel duty rise for September will not happen.
A rise of two per cent above inflation for tobacco duty.