The Spring budget summary
The Chancellor of the Exchequer, Jeremy Hunt, today announced the Spring budget to a packed Houses of Parliament. Here are some of the key points from the Spring budget.
Corporation tax
For businesses making a profit of more than £250,000, Corporation Tax will rise this April to 25% up from 19%.
Full expensing
Full expensing from 1 April 2023 until March 2026 with an extension of the first year allowance of 50%. This is worth £27billion to businesses over 3 years.
Research & Development
Small or medium-sized businesses can benefit from Research & Development (R&D) credits. “A £500 million per year package of support for 20,000 research and development (R&D) intensive businesses through changes to R&D tax credits.”
Hospitality and leisure
There will be £63m fund to support public leisure centres.
Duty on draught products in pubs will be up to 11p lower than the duty in supermarkets from 1 August.
Pensions
The pensions annual tax-free allowance will increase from £40,000 to £60,000. The Lifetime Allowance, previously set at £1.07m, will be removed.
Apprenticeships for over-50s
An apprenticeship style scheme – ‘Returnships’ – will be introduced to target the over 50s offering skills and support to get back to work.
Levelling up
The Chancellor also announced over £400million for new Levelling Up Partnerships in 20 areas in England as well as 12 Investment Zones in the UK.
A further £200million was announced for high quality local regeneration projects.
There will be £8.8bn over next five-year funding period for city region sustainable transport settlements. With a further £200m of funding to help local communities deal with potholes.
Climate and renewable energy
£20bn of support will be given for early development of carbon, capture, usage and storage with up to 50,000 jobs created to help capture 20-30 million tonnes of CO2 per year by 2030.
The Climate Change Agreement scheme will also be extended for two years. This will enable eligible businesses tax relief on energy efficiency measures.
Nuclear power will also be given a classification of “environmentally sustainable” meaning the sector will benefit from the same investment incentives as renewable energy.
Our advisory services at McKenzies
Our accountants can help you map out a plan to reach all of your financial goals. We offer tailored budget and forecast plans, so that no matter the size or type of venture there’s something right for your business. With regular reviews and guidance we’ll ensure changes to your business plan can be implemented right away, helping keep everything on track.
We can help keep you on track and help you benefit from any tax reliefs your business is entitled to, contact McKenzies today.