Spring Budget 2023


The Chancellor has today (15th March 2023) delivered his Spring Budget to the House of Commons.  The headlines include:
  • The Office for Budget Responsibility (OBR) forecast that the UK will not now enter a technical recession this year.  The economy is now forecast to contract by 0.2% in 2023, then grow by 1.8% in 2024 and 2.5% in 2025.  The OBR also forecasts that inflation will reduce to 2.9% by the end of 2023
  • The planned increases to Corporation Tax will go ahead – companies with profits over £250,000 will pay 25%, with a sliding scale of between 19% and 25% for profits over £50,000
  • There will be a new full capital expensing policy from 1 April 2023 until 31 March 2026 and an extension to the 50% first-year allowance in the same period
  • SMEs will be able to claim a credit worth £27 for every £100 they spend, when they spend at least 40% of their total expenditure on R&D
  • The pensions annual tax-free allowance will increase from £40,000 to £60,000; and the Lifetime Allowance has been abolished
  • Fuel duty – the 5p cut to fuel duty on petrol and diesel, due to end in April, will be kept for another year
  • From 1st August alcohol duty on draught products in pubs will be 11p in the pound lower than the rate in supermarkets
  • The Government subsidies limiting typical household energy bills to £2,500 a year is extended for three months, until the end of June
As always, the devil is in the detail!  We will inform you of any further changes as we learn of them.

Castletons Accountants

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