After much uncertainty over the past year, with the cost of living crisis, high energy and fuel costs and rising inflation, Chancellor Jeremy Hunt has revealed his plans for the Spring Budget 2023.
Some of the key points highlighted were:
Pension Tax limits - Taking effect from April 2023, the government will be encouraging those over 50 to return to work, by increasing the Annual Allowance from £40,000 to £60,000 and abolishing the Lifetime Allowance Charge, along with increasing the income level for the tapered Annual Allowance from £240,000 to £260,000 and more.
Corporation Tax Rates - From April 2023, the rate will increase to 25% for companies with profits over £250,000. The 19% rate will become a small profits rate payable by companies with profits of £50,000 or less.
Childcare - Working parents in England will be able to access 30 hours of free childcare per week, for 38 weeks of the year, from when their child is nine-months old to when they start school. This will be rolled out in stages with first stage taking place from April 2024.
Capital allowances - The government has announced Full Expensing, a 100% FYA, which allows companies to deduct the cost of qualifying plant and machinery from their profits straight away with no expenditure limit, effective from 1 April 2023.
Our Budget Summary goes into great detail about all of the announcements made by Chancellor Jeremy Hunt, on 15 March 2023 and is available to download below.
If you have any questions about the summary’s contents or how any aspects of your tax and financial planning may be affected by the Budget, please speak to your relationship partner.
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