Chancellor Jeremy Hunt delivered his Spring Budget, accompanied by a full fiscal statement from the OBR. With the UK now predicted to narrowly avoid a recession in 2023, the Chancellor focused on delivering the government’s growth plans.
A raft of measures were announced, including the extension of some business tax reliefs, ongoing funding for the levelling up agenda and targeted measures on childcare and pensions to encourage more people back into work. More details are expected on the Electricity Generator Levy, among other measures, in the Spring Finance Bill at the end of the month.
BDO have broken down announcements from the Spring Budget into sections – you can find in depth analysis here, under the headings of Corporate Tax, Personal Tax, Indirect Tax, Employment Tax and sector commentary.
Some key points from the Spring Budget included:
Business Investment:
- Full capital expensing for at least 3 years
- Tax reliefs increased for SME’s spending more than 40% of total expenditure
- Funding for12 new Investment Zones and more funding for levelling up schemes
- R&D costs outsourced overseas to qualify for relief for April 2024
- Extension of 50% First Year Allowance and £1m AIA
- Tax reliefs extended for creative industries, theatres, orchestras and museums
- Childcare support enhanced to help get parents back to work
Pensions:
- Pensions Lifetime allowance removed, and Annual Allowance goes up to £60,000
- Minimum tapered allowance for pension contributions increases to £10,000
Duties:
- Alcohol duty on draught products in pubs down 11p
- Fuel cut of 5p maintained for 12 months – and fuel duty frozen.
You can also watch a webinar examining the key points from the Spring Budget on demand here, or please feel free to contact Rosalind Payne, Tax Partner should you have any questions.
