Following the delivery of Chancellor George Osborne's 2014 Budget, Douglas Connell comments on the changes and the effects they will have.
We are beginning to digest the multitude of changes announced by George Osborne in the budget statement and we welcome all kinds of announcements that have been made; it's a pro-business, pro-growth budget.
There were one or two particular changes that are particularly, and especially, welcome. I was very pleased to see that IHT will be waived on the estates of those in our emergency services who die in active service. I think that's a very astute change and a very welcome change.
What we, at Turcan Connell, are especially interested in is the approach that has been taken with the regard to savers and this is an extremely positive budget as far as saving is concerned.
We have felt for a long time that the level of ISAs should be increased and there is a very significant increase to £15,000 with a single new ISA from July of this year. That's a particularly useful way of planning your savings in terms of pension planning and that's being coupled with some very significant and very welcome changes to pensions.
He [Osborne] is approaching this by taking away a lot of the tax restrictions, a lot of the artificiality that relates to pensions, particularly in connection with pension drawdown and removing the compulsion to buy an annuity. He is approaching this on the basis that you trust the people with their own money.
There are lot of other changes in this budget which will gradually be digesting, but I would say that looking at it from the point of view of personal investors, those of who are saving – particularly with a view to creating pensions funds – this is a very good and positive budget and we certainly welcome it.