2013 Budget – What does it mean for you?

Personal allowances

The personal allowance for 2013–14 had already been announced at the
Autumn Statement at £9,440. The Chancellor has now taken the last step in accelerating the planned rise in the personal allowance to £10,000 from April 2014. However, the increase in the personal allowance is aimed at the lower paid so higher-rate taxpayers will not receive any benefit as the basic rate threshold will fall to £31,865 from 2014 pushing more people into the 40 per cent band.

At a glance

• Scrapping of September’s 3p fuel duty rise

• A penny off a pint of beer – and April’s 3p beer duty increase axed

• Cigarette duties unchanged – continuing to rise by inflation plus 2%

• Interest-free loans for homebuyers of up to 20% of the value of new-build properties

• Growth forecast for 2013 halved to 0.6% from 1.2% in December

• Borrowing of £121billion this year, the same as last year, and £120billion for 2014-15

• A 1% cap on public sector pay extended to 2015-16

• Corporation tax down by 1% to 20% in 2015

• Company National Insurance bills cut by £2,000

• Single flat-rate pension of £144-a-week brought forward a year to 2016

• Cap of £72,000 on old age care costs

• Tax relief of 20% on childcare up to £6,000 per child from 2015

 

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