16 Mar Spring Budget 2023
Yesterday, during the Spring Budget, the Chancellor of the Exchequer, Jeremy Hunt, revealed his economic plans for 2023-2024. Here are the key points from yesterday’s announcement:
Pensions
- Annual tax-free allowance for pensions will be raised from £40,000 to £60,000.
- The lifetime allowance of £1,073,100 for pensions will be abolished.
Corporation Tax
- The increase of Corporation Tax from 19% to 25% for businesses making profits of over £250,000 has been confirmed. Companies with a profit of less than £50,000 will continue to pay tax at 19%, and those making a profit between £50,000 and £250,000 will have marginal relief.
Capital Allowances
The government announced two capital allowances which will come into effect from the 1st of April 2023 to the 31st March 2026.
- Full Expensing, will replace super-deduction, allowing taxpayers to deduct 100% of the cost of certain qualifying plant and machinery from their profits before tax.
- The 50% first-year allowance, due to end on the 31st of March 2023, has been extended until the 31st of March 2026.
- The Annual Investment Allowance of £1 million continues.