Spring Budget 2023: Changes businesses need to take note of
- 16th March 2023
The Chancellor Jeremy Hunt has delivered his latest budget and whilst there were few surprises, there are a few things that business owners need to be aware of.
The biggest change coming in from April, and that was announced previously, is the impending increase in Corporation Tax for all companies earning over £50,000 in profits. With the rate rising from 19% to 25% for companies with profits over £250,000.
On a positive note, and to replace the Super Deduction, companies will be able to claim 100% relief on qualifying capital expenditure without any cap. However, for many family-owned businesses, the £1 million Annual Investment Allowance provided this relief already.
Reduced paperwork for international traders and longer time to submit customs forms will be welcomed by many. The new investment zones may provide for some interesting opportunities, albeit they may be fairly niche.
The tax changes made, whilst few in number, are quite significant – in particular pensions, R&D and capital allowances.
The lifetime allowance for pensions – previously £1.07M - was abolished but there is still an annual allowance limitation, albeit it at the higher level of £60,000 per year compared to £40,000 previously.
Commenting on the measures, partner Kevin Hopper said; “This was a budget that was mainly focused on helping individuals and families with new financial support for childcare, ongoing support for household energy bills and a freeze on fuel duty amongst the measures. But there are measures for businesses, which alongside the already announced increases in Corporation Tax, will impact business in different ways.”
“As ever a budget brings in changes that will affect us all differently.
We urge all business owners to contact their professional advisers to review their taxes and overall financial position and to make sure they make the most of any new measures and understand how other measures may affect them to enable to make informed choices.”
You can find download out full 2023 Budget Summary>>> here.
All data and figures referred to in our news section are correct at the date of publishing and should not be relied upon as still current.