Spring Budget 2023
HMRC have released some notes on the announcements made at the recent Budget. Some of the key points are summarised below:
Business Tax
Capital allowances – full expensing: the government is introducing full expensing. Companies incurring qualifying expenditure on the provision of new plant and machinery on or after 1 April 2023 but before 1 April 2026 will be able to claim new temporary first-year allowances. These allowances are: 100% first-year allowance for main rate expenditure – known as full expensing; and a 50% first-year allowance for special rate expenditure.
Personal Tax
Pensions Life Time Allowance (LTA) and increase to the Annual Allowance: Spring Budget abolishes the LTA and increases the Annual Allowance from £40,000 to £60,000. These changes will take effect from April 2023.
Cash Basis Reform: the government is consulting on reforming the cash basis for the self-employed, a simplified way for over 4 million sole traders to calculate taxable profits for income tax purposes. This consultation will run from 15 March 2023 to 7 June 2023.
Please do contact us if you have any queries on the above.