Key points of Spring Budget 2023: At-a-glance
Personal tax
The main personal tax-free allowance and the 40% tax rate threshold remain frozen at their 2022/23 levels until the end of 2027/28, representing a tax rise where income increases
The 45% threshold is lowered from £150,000 to £125,140 for 2023/24
Tax-free dividend allowance falls from £2,000 to £1,000, and CGT annual exempt amount falls from £12,300 to £6,000, for 2023/24
Pension savings thresholds significantly increased: from 6 April 2023, Annual Allowance rises from £40,000 to £60,000 (with related changes to tapering and Lifetime Allowance Charge is abolished; maximum tax-free lump sum remains 25% of former Lifetime Allowance, i.e. £268,275
ISA investment limit remains £20,000
Increase in limit for shares that can be granted under Company Share Ownership Plans confirmed at £60,000
Small Enterprise Investment Scheme limits increased from 6 April 2023 – maximum for investor is doubled to £200,000
IHT thresholds and rates unchanged to the end of 2027/28
Business tax
Confirmation of corporation tax rate increase from 19% to 25% from 1 April 2023 for profits over £250,000
‘Super-deduction’ for plant and machinery bought up to 31 March 2023 replaced by 100% first-year allowance for qualifying capital expenditure, without upper limit, for three years from 1 April 2023
Improvements to Research & Development tax reliefs from 1 April 2023
Reforms to audio-visual tax reliefs from 1 April 2024
Announcement of 12 ‘Investment Zones’ to be established throughout UK with incentives for investment and employment
Other measures
Energy Price Guarantee retained at £2,500 for the average household for another 3 months to 1 July 2023
Significant expansion of free childcare provision to be phased in from April 2024
Fuel duty was frozen, and temporary 5p reduction retained, for another year
Introduction of ‘Returnerships’ – similar to apprenticeships – to encourage over-50s back into work