Budget 2014: what does it mean for families?

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Budget 2014

George Osborne claims to boost savers and families in his new Budget. The income tax threshold climbs to £10,500. For savers, ISA limits have been turbo-charged - and the UK pensions landscape has also been dramatically changed, with Osborne doing away with the need to buy an annuity. But there's a welfare cap of £119bn for 2015-2016.

What does all this mean for your family finances? Let's look at the detail.

Family taxes

Next year, no income tax on the first £10,500 of your salary (a victory for Lib Dems). That means around £800 less in tax if you're a UK typical taxpayer.

The threshold for the 40p tax rate rises from £41,450 to £41,865 in April, then onto £42,285 for the following year.

The transferable tax allowance for married couples also climbs to £1,050.

Inheritance tax will be abolished from those in the emergency services who die in the course of doing their job.

Air passenger duty is to be reformed (you pay less tax travelling to Hawaii than to Asia currently).

Pensions

The big news - huge news - is annuities. All annuity restrictions on how you control your pension pot (if you have one) will be abolished. Bottom line - no longer do you have to buy an annuity.

Everyone aged 65-plus has the opportunity to save with a new NS&I pensioner bond, likely to be 2.8% for a one-year bond, 4% on a three-year bond. There's a maximum £10k per bond limit though.

Defined contribution schemes. Defined pension schemes will be made more flexible and understandable.

The government is finally treating pension savers like grown-ups says Laith Khalaf from Hargreaves Lansdown. "These reforms will make pension saving much more attractive for everyone and get more people saving for their retirement."

The chancellor also claimed £20m would be spent on making free face-to-face advice available on pensions (though more costs added to industry regulation look likely).

Property

If you own a property through a company worth between £500,000 to £2m, prepare to pay a tax penalty.

Osborne is extending the Help to Buy scheme which will be extended to 2020. There will be £150m available to help back self-build projects.

Chancellor confirms a new garden city to be built at Ebbsfleet.

Savers

ISA savers (24m of them) will see some more simplification, merging both shares and cash into a single vehicle - and there's a rise in the overall annual limit to £15,000. (Savers outnumber borrowers by a huge margin.) Crucially, you can stick up to £15,000 in cash in an ISA now.

The 10% rate on savings is also to be axed and the junior ISA limit gets topped up to £4,000.

Premium bond limits also climb.

Childcare

Working parents will get up to £2,000 per child. Available to all families earning less than a joint £150,000. It's thought around 1.9m families will benefit.

Booze and fags

Scotch and cider drinkers are boosted with freezes on duty for both. The alcohol duty escalator will be scrapped; duty will climb in future with the rate of inflation instead.

Prepare for unpleasant coughing from smokers: duty climbs by 2% above inflation, meaning the price of a pack of 20 now climbs by 28p.

Beer duty is snipped by 1p.

A lot of claims by Osborne, including one that income inequality is at its lowest level for almost years.

We'll update as more detail arrives.