Spring Budget 2023
Released On 23rd Mar 2023
Spring Budget 2023
On 15 March 2023 the Chancellor of the Exchequer delivered his Spring Budget.
The Chancellor began by describing his speech as a “Budget for Growth”, saying he would deliver on an aim to make the UK one of the most prosperous countries in the world by removing barriers to investment, tackling labour shortages, breaking down barriers to work and harnessing British ingenuity.
Here is a summary of the most important announcements:
- Cap on amount workers can accumulate in pensions savings over their lifetime before having to pay extra tax (currently £1.07m) to be abolished, ultimately to incentivise experienced workers to stay in work for longer
- Tax-free yearly allowance for pension pot to rise from £40,000 to £60,000
- Fuel duty frozen – the 5p cut to fuel duty on petrol and diesel, due to end in April, kept for another year
- From August, alcohol taxes in pubs to be 11p in the pound lower than the rate in supermarkets
- Main rate of corporation tax, paid by businesses on taxable profits over £250,000 confirmed to increase from 19% to 25%, whilst remaining at 19% for those company with profits up to £50,000, and being at a marginal rate between 19% and 25% for profits in between £50,000 and £250,000
- Additional tax support is being introduced in a bid to back R&D-intensive SMEs with those that spend 40% of their total expenditure on R&D able to claim back £27
- Reduced paperwork for international traders, who will also be given longer to submit customs forms under streamlined rules
- Plans for extended childcare funding have been confirmed with 15 – 30 hours of free childcare for working parents in England expanded to cover one and two-year-olds, phased in from April 2024 to September 2025
