Amid inflation at 10.7% and striking public servants and transport worker the Chancellor, Mr Hunt
delivered his budget. The statement was a surprisingly upbeat plan for growth concentrating on his
new industrial strategy and consequently there was little mention of tax.
Employment –new incentives will be introduced to encourage people back into work to increase the productivity of the country.
Childcare – support will be given for nurseries from September and free childcare places for young children will be introduced.
Pension contributions–the annual amount that an individual may pay into their pension or SIPP has increased from £40,000 to £60,000. However, this will be tapered where an individual earns more than £260,000.
Pension lifetime limit–the lifetime allowance charge will be removed from April 2023 and the lifetime limit abolished from April 2024.
Energy – The energy price guarantee will remain in place until June 2023.
Corporation Tax – The planned increase in Corporation Tax to 25% (for companies with profits over £250,000) will go ahead from April.
Capital Allowances – 100% relief is available for new IT, plant & machinery in the year when investment is made until March 2026. A new 50% first year allowance for special rate assets will also be available for three years.
Investment Zones – Twelve new investment zones will be introduced across the country to promote growth by tax relief and grant funding.
15 March 2023
If you would like to discuss anything in further detail or any issue affecting your business, then
please do not hesitate to contact Anne Healy‐McAdam, Head of Tax (email@example.com) or your
usual ACT contact.