Here are the highlights of the Chancellor’s Spring Budget 2023.
- Corporation Tax: The main rate of 19% increases to 25% from 1 April 2023 (as previously planned).
- Income tax: No changes to income tax and National Insurance rates and bands were announced.
- Pension tax relief: The annual allowance increases from £40,000 to £60,000 from 1 April 2023.
- Alcohol duty: Duty rates increase in line with RPI. Relief on draught products increases (beer and cider measures).
- Fuel duty: Fuel duty remains frozen and the 5p reduction continues for the next tax year.
- Research & Development: 27% relief for loss-making R&D SMEs whose qualifying expenditure is 40% of total expenditure from 1 April 2023.
- Capital allowances: The Super Deduction is replaced with Full Expensing (100% capital allowances) for qualifying plant and machinery from 1 April 2023 for 36 months, with potential to become permanent.
- Electric vehicles: EV charge points continue to qualify for 100% first-year allowances for a further 2 years (to 31 March 2025).
- Tax fraud: Maximum sentences for serious tax fraud increase to 14 years (from 7 years).
- Plastic Packaging Tax: Uplifted in line with CPI from 1 April 2023.
