In yesterday's Budget, the Chancellor Jeremy Hunt, announced several measures under his 'Four Pillars' of Enterprise, Education, Employment and Everywhere, aimed at growing the economy.
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Please download our detailed Budget Summary above for comprehensive details, but the headline measures announced were:
- The headline rate of Corporation Tax will increase from 19% to 25% from 1 April 2023, for companies with profits over £250,000. Companies with profits between £50,000 and £250,000 will receive marginal relief. Those with profits under £50,000 will pay 19%.
- The £40,000 annual cap on pension contributions per year is to be raised to £60,000 from 6 April 2023.
- The income threshold at which the allowance is tapered will rise from £240,000 to £260,000, from 6 April 2023.
- Removal of the lifetime pension allowance, with the intention to abolish in a future Finance Bill.
- 12 new Investment Zones to drive business investment have been announced.
- Full expensing tax relief on qualifying plant and machinery investment will come in from 1 April 2023 for the next three years, with an intention of becoming a permanent relief. This will allow businesses to fully offset capital expenditure against taxable profits.
- Annual investment allowance has been increased to £1 million for smaller businesses.
- An R&D tax credit scheme for Companies investing in Cancer research. Qualifying Small/Medium sized businesses spending 40% or more of total expenditure on R&D, can claim £27 credit per £100 spent. Eligible loss-making companies will be able to claim £27 for every £100 of R&D investment.
- Certain restrictions to R&D tax credits due to take effect from 1 April 2023 will be delayed to 1 April 2024.
- An increase for film, high-end television, and video games tax credit to 34%, with the animation and children’s TV sectors increasing to 39%.
- Consultation on reforming certain share
option
sschemes and plans to simplify the granting process for the EMI share option scheme. - New criminal charges for promoters of tax avoidance.
- A freeze on road fuel duty tax and the recent 5p cut in petrol and diesel duty for 12 months will be retained.
- A duty freeze on average strength draught beer sold in pubs across the UK.
- Increased childcare support for working parents.
- Measures to close the disability gap and help those on long term sickness return to the workforce.
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