Spring Statement – March 2023

Here are the highlights of the Chancellor’s Spring Budget 2023.

1. Corporation Tax – the main rate of 19% will increase to 25% from 1st April as previously planned.
2. Income tax – no changes to the tax and national insurances rates and bands.
3. Pension tax relief – tax free contributions increased from £40,000 to £60,000 from 1st April 2023.
4. Alcohol duty – duty rates will increase in line with RPI. However, relief on draught and cider draught products will increase from 5% to 9.2% and from 20% to 23% respectively.
5. Fuel duty – this is frozen and the 5p reduction will remain for the next tax year.
6. Research & Development – 27% relief will be available for loss making R&D small and medium enterprises whose qualifying expenditure constitutes 40% of total expenditure from 1st April 2023.
7. Capital Allowances – the Super Deduction scheme will be replaced with Full Expensing 100 Capital Allowances for qualifying plant and machinery from 1st April 2023. This will last for 36 months and could possibly be made permanent.
8. Electric Vehicles – charge points will continue to qualify for 100% first year allowances for 2 more years until 31st March 2025.
9. Tax Fraud – serious cases of tax fraud will attract maximum sentences of 14 years, up from 7 years.
10. Plastic Packaging Tax – this will be uplifted in line with CPI from 1st April 2023.

For the full spring statement on gov.uk, click here.

If you have any concerns or questions, do not hesitate to contact us. Click here.

Please subscribe to our weekly newsletter below and share this article if you find it useful.