The Chancellor Jeremy Hunt delivered his Spring Budget in the House of Commons under the headings of Employment, Education, Enterprise and Everywhere.
A number of previously announced changes due to take place from April 2023 have been re-confirmed including the tax rates and allowances in relation to income tax, capital gains tax and National Insurance Contributions as announced in the Autumn Statement; together with confirmation of the change in the corporation tax main rate to 25% from April 2023. A range of new tax related measures were also announced by the Chancellor and the key highlights are summarised below:
Capital Expenditure – The Capital Allowances regime is to change from April 2023 when businesses will benefit from the following:
- Full Expensing - 100% first-year relief for companies on qualifying new main rate plant and machinery investment until March 2026
- First Year Allowance - 50% relief for companies on new special rate (including long life) assets until March 2026
- Annual Investment Allowance - 100% relief for plant and machinery investment up to £1m, available to all businesses including unincorporated businesses and most partnerships
R&D Tax Credits – Enhanced R&D relief from April 2023 for loss making R&D intensive SMEs, where a company has an R&D intensity of at least 40%
Pensions - Lifetime allowance charge to be removed and annual allowance to increase from £40k to £60k, from April 2023
Creative Industries – Existing enhanced tax reliefs for Theatres, Orchestras and Museums will continue from April 2023 for two years
Investment Zones – Twelve new proposed investment zones with enhanced tax reliefs to include one in Northern Ireland
Charitable Giving – Restriction on charitable tax reliefs - limited to UK charities and UK Community Amateur Sports Clubs only from April 2023 (transitional relief regarding EU and EEA charities until April 2024)
Inheritance Tax – Woodlands and Agricultural Property IHT reliefs will be restricted to land in the UK for transfers made on or after 6 April 2024
As many of the announcements are subject to legislation, the details may change during the legislative process and should therefore be kept under review. It should also be noted that some reforms are subject to separate implementation in NI, including any application of childcare proposals.
Alternatively, you can contact your usual GMcG adviser or any member of our Tax team who will be happy to help:
Belfast - Helen Allen T: 028 9031 1113 E: allenh@gmcgca.com
Lisburn - Christine Harrison T: 028 9260 7355 E: harrisonc@gmcgca.com
Portadown - Paul O'Connor T: 028 3833 2801 E: oconnorp@gmcgca.com
