The Spring budget Report for 2023 was released yesterday.

So, what were the key points for business owners? Well, it seemed that there wasn’t much new in it!

The headline “Full Expensing” for assets is not really any different to the current Annual Investment Allownce – it just removes the current limit of £1m of expenditure each year, which won’t be seen by most business owners anyway. And it’s not as generous as the current Super Deduction that ends this month – that allows 130% of expenditure as for tax relief.

The Corporation Tax increases that were announced a couple of years ago to start in April 2023 are confirmed and the dividend tax rates that increased last year aren’t being reduced. All in all, taxes are increasing for business owners from every angle.

The one potential benefit is the increasing of the tax-free pension allowance to £60,000 per annum. And the removal of the lifetime limit.

Other points to note are:

  • Increase of R&D tax relief if you spend more than 40% of your total expenditure on R&D
  • Up to 30 hours of free childcare for children aged 9 months and above…but it won’t be fully rolled out until September 2025
  • Energy price cap extended for 3 months
  • Draught Beer will be cheaper!

You can download our handy summary below.

Download Our Budget Report

 

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