Spring Budget 2023: Key highlights and takeaways

With the Chancellor Jeremy Hunt’s Spring 2023 budget being set to focus on Growth we have summarised the key points that he discussed this afternoon which affect SME’s and individuals.

1. The biggest announcement was that to the pensions. With the annual allowance increasing from £40,000 to £60,000 per year and the lifetime allowance limit being abolished – this will likely be welcome news for most.
2. The expected corporation tax rise for businesses with profits of over £250,000 to 25% is still in place for April 2023. With this rate to be tapered for businesses with profits between £50,000 and £250,000 from between 19% and 25%.
3. The super deduction allowance of 130% is set to stop in March 2023 and appears to be replaced with full capitalising expensing. Meaning for every £1 spent on capital expenditure a full deduction can be made. This does not seem any different for most as the annual investment allowance can cover this for capital of up to £1m.
4. Research and Development also has a further allowance available as the rates are set to cut from 130% to 85% in April 2023. There is now an enhanced credit available for SME’s if they spend more than 40% of their total expenditure on R&D. Meaning they can claim an additional credit of £27 for every £100 spent.