Spring Budget Summary 2023 - Carpenter Box

Spring Budget Summary 2023

The Chancellor of the Exchequer, Jeremey Hunt presented the latest Spring Budget on Wednesday 15 March 2023.

Mr Hunt opened his first full Budget speech by declaring that it was a 'budget for growth'. He emphasised that this would be 'long term, sustainable, healthy growth'. The Office for Budget Responsibility reported that there is unlikely to be any growth in 2023, but the UK is likely at least to avoid a recession. The majority of the tax announcements had been made in advance, and most of the speech concentrated on spending plans.
Even so, there were some striking headlines on tax: the abolition of the limit on tax-favoured pension savings and the introduction of unlimited 100% deductions against profits for company investment in new plant were more generous than most predictions. There were measures to encourage 'economically inactive' people back into the workforce, ranging from increasing the provision of free childcare to the introduction of 'returnerships' - apprenticeships for people over 50.
Our Spring Budget Summary sets out the latest proposals and their impact, but also included some significant measures from other earlier announcements as a reminder of their importance.

Read our summary on our dedicated Budget Hub

Significant points include:

  • Confirmation of corporation tax rate increase from 19% to 25% from 1 April 2023 on profits over £250,000 and marginal rate of 26.5% on profits between £50,000 and £250,000
  • Personal tax rates and allowances on income and capital gains, and National Insurance Contributions, confirmed for 2023/24 as announced in the Autumn Statement
  • Pension savings thresholds significantly increased: from 6 April 2023, Annual Allowance rises from £40,000 to £60,000 and Lifetime Allowance Charge is abolished; maximum tax-free lump sum remains 25% of Lifetime Allowance, i.e. £268,275
  • 'Super-deduction' for plant and machinery bought by companies 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
  • Energy Price Guarantee retained at £2,500 for the average household for another 3 months to 30 June 2023
  • Significant expansion of free childcare provision to be phased in from April 2024

We will be happy to help you adapt and reassess your plans in light of any legislative changes. If you would like more detailed one-to-one advice on any of the issues raised in the Budget, please get in touch or give us a call on 01903 234094.


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