Spring Budget Summary 2023
On Wednesday 15 March 2023, Chancellor Jeremy Hunt announced the Spring Budget. The Budget was mainly focused on how the Government planned to spend, with the vast majority of changes to tax rates and allowances having been made in the Autumn Statement back in November 2022.
To help digest the Spring Budget 2023, we’ve highlighted some key areas below. To read our full Budget summary, complete the form at the bottom of this page to download your copy.
Personal tax:
- The main personal tax-free allowance and the 40% tax rate threshold remain frozen at their 2022/23 levels until the end of 2027/28
- The 45% threshold is lowered from £150,000 to £125,140 for 2023/24
- Tax-free dividend allowance falls from £2,000 to £1,000, and CGT annual exempt amount falls from £12,300 to £6,000, for 2023/24
- Pension savings thresholds significantly increased: from 6 April 2023, Annual Allowance rises from £40,000 to £60,000
- Pension Lifetime Allowance Charge will no longer apply from 6 April 2023
- Small Enterprise Investment Scheme (SEIS) limits increased from 6 April 2023 – maximum for investor is doubled to £200,000
- IHT thresholds and rates unchanged to the end of 2027/28
Business tax:
- Confirmation of Corporation Tax rate increase from 19% to 25% from 1 April 2023 for profits over £250,000
- ‘Super-deduction’ for plant and machinery bought up to 31 March 2023 replaced by 100% first-year allowance for qualifying capital expenditure, without upper limit, for three years from 1 April 2023
- Announcement of 12 ‘Investment Zones’ to be established throughout UK with incentives for investment and employment
- R&D loss making companies where R&D forms at least 40% of their total expenditure will still be able to claim a payable credit of 14.5%, instead of the new 10% credit rate under the SME scheme
For further details on these key areas, and to view our full summary of the Spring Budget 2023, click the link below to download our summary.
Spring Budget Summary 2023
If you have any questions relating to any of the areas within the Spring Budget, please contact us on the details below.
(E) enquiries@advaloremgroup.uk (T) 01908 219100 (W) advaloremgroup.uk
