The long-awaited Budget was delivered by Jeremy Hunt earlier today, his first as Chancellor of the Exchequer. Being billed by the Government as one that will encourage people back to the workforce and boost the UK’s economy growth, the Chancellor opened his budget speech with “today we deliver the next part of the plan, a budget for growth”.
With this, the Chancellor said his budget will achieve growth by “removing obstacles that stop businesses investing; by tackling labour shortages that stop them recruiting; by breaking down barriers that stop people working; and by harnessing British ingenuity to make us a science and technology superpower”.
Here we have summarised some of the key points of the budget.
- As stated in the Autumn Statement, the Personal tax thresholds are frozen, including the personal allowance for income tax and the nil rate band for inheritance tax for a further two years, on top of an existing four-year freeze, to April 2028.
- National insurance thresholds will also be frozen for a further two years, to April 2028.
- The Lifetime Allowance on pension savings will be abolished with no limit, a change from the current lifetime allowance of £1,073,100.
- The Annual Allowance on pension savings will increase to £60,000, up from £40,000.
- The main rate of Corporation Tax will still raise from 19% to 25% from 1 April 2023. Any companies with taxable profits of £50,000 or below will still pay 19%.
- A new uncapped 100% First Year Allowance to be introduced on qualifying main pool expenditure meaning every £1 spent on qualifying plant and machinery and IT equipment will receive 100% tax relief.
- An introduction of 50% First Year Allowances (FYA) for special rate qualifying plant and machinery, including long life assets.
- An extension of the 100% First Year Allowance for qualifying expenditure on electric vehicle charge points equipment until 31 March 2025.
- Small or medium-sized businesses will be able to claim a credit worth £27 for every £100 they spend, if they spend 40% or more of their total expenditure on Research and Development (R&D).
- The Super Deduction will still end on 31 March 2023.
The Spring Budget 2023 Speech
The Spring Budget 2023 Documents
If you would like to discuss how these changes may affect you and/or your business, please contact your usual NRB advisor or our tax team.
The content of this Spring Budget summary is intended for general information purposes only. The content should not be relied upon in its entirety and shall not be deemed to be or constitute advice.
While we believe this interpretation to be correct, it cannot be guaranteed and we cannot accept any responsibility for any action taken or refrained from being taken as a result of the information contained within this summary. Please obtain professional advice before entering into or altering any new arrangement.