Initial Budget Summary

There's no doubt that this year’s budget will bring a great deal of cheer for pensioners, savers and bingo players!  The Chancellor has announced a number of measures that will see pensioners given great access to the funds they have built up over their working life, allowing them to access their 'pot' after the initial 25% tax free, they will be given access rights to the balance subject to their normal income tax rates.  They will have to have a base level of income but if they meet this then this is clearly good news.

Good news also for savers who have been hit hard by the recession.  They will see greater ISA allowances and a new pensioners bonds that will pay 2.8% for a one year bond.  They will also benefit from the scrapping to the 10% tax rate on interest.

There was good news for businesses who invest in new capital with the annual allowance, which gives them 100% relief against their tax liability has been doubled to £500,000 and extended to the end of next year.  Also for Cumbria the Chancellor confirmed his previous announcement that the fuel duty increase set for September has been scrapped.

Finally bingo players will see the duty on their favourite pass time halved to just 10%, which the Chancellor undoubtedly will hope to stem the tide of bingo hall closures.

Graham Poles, Partner and Head of Tax

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