increase income tax exemption threshold by 1.5%
decrease the income tax marginal rate by 1.0% from 27% to 26%
enhance tax relief for parents of children in higher education
remove restrictions to child allowance by reference to child’s earned income
increase age of entitlement to the higher exemption threshold from 63 to 65
amend ITIS provisions to restrict credit available to controlling directors
create a level playing field for oil importation and distribution companies
introduce mandatory online filing for ITIS returns
remove three-year rule of residence for making lump sum donations
permit certain residents with housing licences granted under regulation 1(1)(k) to apply to be taxed under the post July 2011 regime
strengthen legislation on interest deductions to counter non-commercial debt financing
revise the relief due to the self-employed in respect of social security contributions in response to changes to the social security law
repeal the tax credit due for the electronic delivery of income tax returns
amend the distribution rules introduced in the 2013 budget to ensure they operate as intended

Goods and Services Tax

There is no change in the rate of GST, which remains at 5%. Some minor administrative changes are proposed to ensure that the law works as intended. These measures include:

clarifying the definition  of an ‘Existing Building’ that is eligible for the 0% rate.
clarifying the position regarding white goods, carpets and other removable goods supplied in zero-rate dwellings.
providing increased flexibility in the deregistration process, among others.
clarifying the treatment of imported goods put to private use / deregistration
providing a discretionary power to the Comptroller in respect of input tax claims to allow more flexibility

Impôts Duty

The proposed increases in the 2014 budget are:

spirits – 11% (This represents a £1.27 increase on a litre bottle at 40% abv)
wines – 5% (This represents a 7p increase on a 75c bottle of table wine)
weak beer / cider – 5% (This represents a 2p per pint increase on beer under 4.9% abv)
strong beer / cider – 11% (This represents a 6p per pint increase on beer over 4.9%abv)
tobacco – 11% (This represents a 47p increase per packet of 20 cigarettes)
fuel – 2% (This represents a 1p per litre increase on unleaded petrol)

Stamp Duty and Land Transaction Tax

The proposal in the 2014 budget is to continue the extension of the maximum threshold for first time buyer relief from £400,000 to £450,000 until 31 December 2014.

Capital Programme

The Medium Term Financial Plan (MTFP) set out the capital programme for each of the years 2013- 2015 and the debate on the MTFP approved the Capital Programme, in total, for each of these years. The budget for each of these years will approve the detailed list of projects. The total allocation approved for 2014 was £88,892,000.

The approximate allocations proposed for 2014 are: