Spring Budget 2023

On 15 March 2023 the chancellor, Jeremy Hunt, announced the Spring Budget 2023. Read how the 2023 Spring Budget affects you and your taxes. Our clients can ask us what it means to them, all included in our low fixed-fees.

Spring Budget 2023
Spring Budget 2023

Highlights of the Spring Budget 2023

  • Recession expected to be avoided in 2023 and inflation to fall to around 3%
  • Energy price guarantee (£2,500 cap for a typical bill) is extended by 3 months to 30th June 2023
  • Duty on draught drinks will be cut on 1st August 2023, 11p lower than supermarkets.
  • Fuel duty frozen for another 12 months
  • Corporation tax increase from 19% to 25% as expected, but only 10% of companies pay 25%.
  • Full tax relief on all plant and equipment in the year purchased. This replaces the 130% super-deduction and the £1m Annual Investment Allowance, so it only helps the very largest companies.
  • Annual prize offered for best Artifical Intelligence projects.
  • Tax relief for theatres, orchestras, museums and gallaries to stay at 45-50% until 2025.
  • Disabled people will not lose disability benefits if they become employed.
  • Hours of working while still claiming some benefits to increase from 16 to 18 per week, and pressure applied if working less than 18.
  • Over 50s encouraged back to work with incentives, including mid-life MOT scheme expanded, apprenticeships ‘returnaships’, skills boot camps and increasing pension limits.
  • Annual pension limit increased from £40k to £60k.
  • Lifetime pension limit of just over £1m is to be abolished.
  • Childcare reforms: incentive payments of £600-£1,200 to new childminders, providers given 30% increase in funding and ratios of children to carers relaxed, upfront payment to workers towards childcare £951 – £1,631, all schools to offer wrap around full-time cover by 2026. 30 hours of free childcare for every child from 9 months to under 5 years old.

More details will follow here soon.

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Disclaimer
The information contained in this newsletter is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.

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