Spring Budget – 15 March 2023: Highlights

The Chancellor, Jeremy Hunt, delivered his first Budget this afternoon, promising a Budget for growth. Much attention has already been given to the extension of free childcare to one and two year olds, and the extension of the energy price guarantee to 30 June 2023.

The tax announcements include:

Corporation Tax

• Corporation Tax Rate: the increase to the main rate to 25% from 1 April will go ahead.
• Capital Allowances: full relief for capital expenditure for the next three years e.g. on IT equipment, plant and machinery. The intention is to make this permanent.
• Research and Development Credit (R&D): an enhanced credit of £27 per £100, where 40% or more of (a small or medium) business’ expenditure is on R&D.
• Cultural tax reliefs for theatres, orchestras, museums and galleries will continue at 45%-50% until 2025.
• Creative tax reliefs for film, TV and video games to be simplified and modernised.

Pensions:

• Annual Allowance to increase to £60,000.
• Lifetime Allowance to be abolished.

Employment: new apprenticeships for the over 50s returning to work (‘returnerships’)

Fuel Duty: frozen for a further 12 months.

12 new investment zones around the UK.

Tax Avoidance Schemes: further measures to tackle schemes to be announced.

Further details will follow in our full summary.

Please contact Katharine Arthur, Partner and Head of Private Client, with any queries.