Spring Budget 2023

The new Spring Budget for 2023 has been announced with some changes around the board. The pension saving cap of £1.07 million, the amount that workers can accumulate into their pensions saving over their lifetime without having to pay additional tax has now been abolished. 

Alongside this, the tax-free yearly allowance for pension pot is to rise from £40,000 to £60,000, after being frozen for nine years. 

 

The main rate of corporation tax, paid by businesses on taxable profits over £250,000, will increase from 19% to 25%. With companies having profits between £50,000 and £250,000 to pay between 19% and 25%. 

 

Capital Allowances - The super-deduction regime will end 31 March 2023, and will be replaced from 1 April 2023 with ‘full expensing’ - 100% capital allowances for qualifying plant and machinery. This will last for three years, to 31 March 2026, although the Government indicated that it is their ambition to make this permanent. The Government will also introduce 50% first year allowances for ‘special rate’ plant and machinery, including long life assets. These rules apply only for corporation tax purposes, and will not be available for businesses which are subject to income tax, unless they are below the Annual Investment Allowance threshold of £1m per annum. 

 

For more information on the budget, please follow: https://www.gov.uk/government/publications/spring-budget-2023/spring-budget-2023-html 

 

Thank Evans for that!