George Osborne’s Budget 2014 changes to the Cash ISA Allowance, Personal Tax Allowance and Private Pension among others will have an impact on the lifestyle of many people over the next few years.
The Chancellor has made tax-free savings in ISAs more “generous” and unveiled new “pensioner bonds”.
Tax changes for “low and middle income” workers also featured in his Budget.
A new Pensioner Bond paying market leading rates will be available from January to all over 65s, with interest rates of 2.8% for one-year bonds and 4% for three-year bonds.
The amount people earn before tax will go up by £500 to £10,500 and the 40p tax threshold will go up.
The chancellor froze petrol duty, cut bingo duty from 20% to 10%, froze duty on Scotch Whisky and cider and cut a further 1p from a pint of beer – but put the price of cigarettes up.
Cash and stocks ISAs are to be merged into a single New ISA with an annual tax-free savings limit of £15,000 from 1 July. The limit for Junior ISA will be raised to £4,000.