At a Glance: Spring Budget 2023

The long-awaited Spring Budget 2023 was announced yesterday and #TeamSAS have broken down the key take away points delivered by Jeremy Hunt below.

  • Reassurance was given that the UK will not enter a technical recession. The Office for Budget Responsibility (OBR) predicts that inflation will fall from 10.7% to 2.9% by the end of 2023.

 

  • Energy price guarantee is set to remain at £2,500 to June 2023, where they had previously been set to increase to £3,000 from April.

 

  • Corporation Tax is set to increase to 25% as planned. Firms who have annual profits of more than £250,000 will pay 25% tax on their profits from April 2023.

 

  • Super Deduction will be replaced with 100% first year allowance on plant, machinery and IT equipment for at least the next three years.

 

  • Pension annual tax-free allowance has increased from £40,000 to £60,000. The lifetime allowance that is currently set to a maximum of £1million will be abolished going forward.

 

  • As of April 2024, 30 hours of free childcare will start to be introduced for parents and children aged nine months or over starting with parents of children aged two years or over.

 

  • Further support has been granted for Research & Development (R&D) intensive SMEs via an enhanced rate of tax relief for loss making companies and creative industries through increased audio-visual tax reliefs.

 

What are your thoughts on this latest financial announcement? Will they positively affect you and your business? We would love to hear your views in the comments below.

You can find further information on the points listed above by visiting the Gov website.

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