How does the Chancellor’s 2014 Budget affect you?

Your reasoning anbout the introduction timing is likely correct but the statement as to whether Elizabeth II is relevent to an independent Scotland is a little hypothetical. It has already been stated that Scotland would have to develop its own currency. In fact, it may have to develop two currency regimes, like a lot of other countries which try to base their economy on oil and gas extraction, The US$ would be used for international trade and another currency, shall we call it the Alba, would be used for domestic transactions.

Why call it the Alba ? I wasn’t aware the rest of the UK had the sole right to use the word ‘Pound’

Sorry if you vote to leave the Union then you leave EVERYTHING behind and start again as all others have done in the past eg South Afria, India etc.
I was born in England and have resided in Scotland for 42 years but I’m still British as on my Passport, and always will be. If Salmond and his followers have their way then they will no longer be eligible for a UnitedK passport. The same applies to Currency.

Nor will you. If everything has to change then a new name will be needed for the UK which will according to your logic have ceased to exist

Currently UK is comprised England ,Scotland and Wales
Great Britain is England, Scotland, Wales and N Ireland.
So there still be a United England and Wales as they have so far not indicated to withdraw.

I wouldn’t imagine the name of Great Britain as an island wouldn’t change and would still comprise the countries of England, Scotland and Wales. The country which also incorporates Northern Ireland and of course all the other islands such as Orkney etc is currently called the UK and this is what the passports hold of course. It would have to mean that Scottish residents would no longer hold a UK Passport as if Scotland becomes independent then there would be a need for Scottish passports
Of course this leaves the other countries with a decision regarding the name of the rest of the Union. I personally would see no reason why it would need to change but possibly it should. The name came about following the unions of the Scottish and English crowns after all

Replying to Brian . . . Actually, Northern Ireland is not part of Great Britain. The UK’s full title is the United Kingdom of Great Britain and Northern Ireland. Great Britain comprises England Scotland and Wales. England, Wales and Northern Ireland would still be able to claim the title “United Kingdom” if Scotland left, and any country can call its currency unit the Pound just as many have chosen to use the word Dollar. The Kingdom of Scotland would also be able to mint a coin that was virtually identical to the UK’s new pound coin if it chose to.Maybe it would be divided into 100 Groats [or Bawbees perhaps]. Scotland could also keep anything with the word “Royal” as a prefix and I believe the appellation “Her Britannic Majesty” would still be correct in the invocation printed on the inside cover of a Scottish passport.

Many thanks for the correction.
Brian.
Dundee.

Ref paragraph 1: Savings interest is that which is potentially taxable at your marginal rate (10%,20%,40% or 45%). Dividends are taxed at 10% or 32.5% and are not classed as savings income.
In the current tax year the first £2790 of savings interest over your personal allowance is taxed at 10% provided you do not have taxable income from employment/ pensions. Every £1 of employment/pension income over your personal allowance reduces the 10% savings band by £1, so if taxable employment/pension income exceeds £2790 all savings income is taxable at 20% or higher. The budget simply replaces the £2790 with £5000 and the 10% rate with 0%

The problem is we don’t trust the companies who provide the annuities. These are major companies who make huge profits by underpaying annuities. There will be new “products” to attract those who wish to cash in so I would hang on, read up as much as you can and don’t forget you still have to pay tax at your marginal rate. Everybody’s finances and personal situations differ so there aren’t going to be any easy answers. BE CAREFUL!

What fun the budget has been. I can now spend all my time in the bingo halls and pubs. On a serious note it has come far too late to offer anything to retired pensioners apart from the wealthy. Having spent all my life working on a modest salary was only able to save small amount into a pension to supplement my state pension. Complete waste of time as find I cannot access any other benefits as just over the limit. Any savings long disappeared owing to miserable returns on cash.Increased cost of living on all basics ie heating,electricity and food means little left over for any treats.Heating allowance frozen again. Why give so much help to couples with children earning 300k? Always feel Government would prefer it if all retired people just quietly died. We have without doubt paid for the crash,worked hard ,tried to save a little as encouraged,betrayed by Government and the Bank of England. Too little too late.Seen through election ploy. Feel if I hear the phase ‘hard working families’ again will go senile! Implies single people are not included. So depressing that all the main parties offer nothing to those on low incomes just demonstrates how removed they are from real life.Could be ruled by martians for all the understanding Government has of the man or woman in the street.

Could this be a business opportunity?

Reg, from April 2015 “whatever the size of a person’s defined contribution pension pot, we propose they’ll be able to take it how they want, subject to their marginal rate of income tax in that year”. So it seems that you can take as much out as you like. But if you take a lot you will pay up to 45% tax on it

Thanks for that explanation on tax on savings, Malcolm. As I expected, every silver lining has a cloud in front of it. They giveth with one hand and taketh away with the other.

I entirely agree with you on the other fiscal chnages that will strengthen the economy structurally.

Paganlady has reminded us that the Winter Fuel Allowance has not been uprated. Perhaps the intention is to let this wither on the vine. Or maybe there will be a treat in the next budget [a few weeks before the General Election] – like double the allowance and tax it at the marginal rate. Only supposing . . .

John, Thanks. It is a silver (or copper) lining for some. The previous savings income was taxed at 10% (I believe) and limited to £2880. So those with low earnings and some savings (e.g. on state pension with cash pot) could benefit.

Winter feul and Child benefit should be taxed so that only the most need have the full benefit.
Taxation initially was for raising income but should now be uased to redistribute earned wealth.
Brian. Dundee.

David, as I understand it, from 27th March this year you can take out £10k, and from April 2015 as much as you want (may be taxable, of course)

Who are these emergency workers ? So difficult to define it is impossible to draw lines. Soldiers ? Generals ? Firemen ? Fire chiefs ? Policemen ? police chiefs as well ? How about the ‘specials’ ? Paramedics, ambulance drivers ? Traffic wardens ? Nurses probably are more at risk than the average fireman, who sits and waits for the occasional chimney fire.

The government has demonstrated yet again, that they are completely out of touch with what they insist on calling ‘hardworking people’. Do they think we all wear flat caps and keep whippets and pigeons? There was nothing for me in this budget.

Mic, my understanding is if your scheme provides an income plus a lump sum then you can presumably take all the lump sum, but not the money on which the income is based. If your scheme only provides a lump sum, then you will be able to do with it what you choose after next year – bearing in mind what you withdraw is taxable. Anyone know differently?

As a teacher in the TPS you are eligible for a lump sum payment plus your monthly pension. The lump sum and pension are based on your earnings x number of years of service. At the time of your retirement, the TPS will send you the option to take the minimum lump sum and full monthly pension, or a larger lump sum and a smaller monthly pension. Fortunately I have a son in finance and he advised me “If you were a saver, you should take the larger lump sum, however, you are a spender so you should take the basic lump sum and the full monthly pension!” It was good advice. The TPS should let you know what your anticipated pension will be, try looking on-line or write to them for information.

There seems a good deal of inequity in life – when an OAP is supposed to exist on £140 a week (£7280 a year) and others get benefits Capped (!) at £25000; when many public servants get gold plated pensions rising with inflation, subsidised by the other taxpayers and pensioners on poor annuities. But that’s life. Many will benefit from the budget – not all of whom pay 40% tax or have millions to invest. Some sensible steps in the right direction. Particularly when thrift is rewarded.

rogermac, an annuity is effectively an insurance that you have purchased and it is not possible to reverse the transaction – stuck with it for life. That is my understanding.