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Spring Budget 2023

The Chancellor Jeremy Hunt has unveiled his ‘Back to Work’ March Budget. Below we summarise some of the key points.

Taxes and thresholds
All of the changes to taxation will go ahead as previously announced in the autumn statement.

Investment Allowance 
The Annual Investment Allowance to be permanently increased to £1million. Additionally, there will be a new policy for capital expenditure introduced, to enable ‘full expensing’ in the year of purchase.

Pension Allowances
The £1million lifetime allowance is to be abolished, and the annual tax-free allowance is to be increased from £40,000 to £60,000.

Research and Development
Small and medium-sized businesses will be able to claim a credit of £27 for every £100 spent, if they spend 40% or more of their total expenditure on Research and Development.

The OBR has said that the UK will not enter recession this year. Inflation is set to fall to 2.9% by the end of the year.

The thirty hours of free childcare for working parents will be expanded to cover all children under five by September 2025.