Jeremy Hunt delivered the Spring Budget on 15 March 2023. Full details can be found on the Government site.
The key points from Spring Budget 2023 that impact our clients are:
Pensions
The lifetime allowance charge will be removed from 6 April 2023. The current limit on a pension pot before a charge could apply is £1,073,100, but this limit is being abolished from 6 April 2023.
The annual allowance will be increased from £40,000 to £60,000 from April 2023.
The minimum annual allowance for higher earners is also increasing. Currently, high earners have a minimum annual allowance of £4,000, but from 6 April 2023 this will increase to £10,000. The taper for higher earners currently applies where adjusted income is above £240,000. From 6 April 2023 this will increase to £260,000.
Capital allowances
100% of qualifying capital expenditure will be allowed as a tax deduction. This is an increase on the current £1m Annual Investment Allowance limit.
The 50% rate continues to apply to special rate assets.
Research and Development
A new enhanced credit will apply from 1 April 2023 for some R&D intensive companies.
To see how we can help you and your business, please contact us.