The message of the budget 2014 seems to be “save more and earn more”. The income requirement for flexible drawdown will fall from £20,000 to £12,000; the capped drawdown limit will fall from 120% to 150%; the size of the lump sum small pot will rise five-fold to £10,000; and the total pension savings you can take as a lump sum will almost double to £30,000.
Firstly, tax avoidance through corporate entity (company).
The expansion of the new tax introduced to stop people avoiding stamp duty by owning homes worth over £2 million to those worth more than £500,000 through a company. As of midnight tonight anyone purchasing residential property worth over half a million pounds through a corporate envelope will be required to pay 15% stamp duty.
Secondly, waiving inheritance tax.
Waiving inheritance tax for those in our emergency services, but only for those leaving more than £325,000 making it difficult to benefit.
Thirdly, new house building.
People will have a new “right-to-build-your-own home.” A equity loan element of the current Help to Buy scheme (which started a year ago) will now last until 2020. This is intended to support over 200,000 new homes for families.
What are your thoughts?