Most of the announcements made by UK Chancellor Jeremy Hunt will have a significant impact on our personal finances. The energy price guarantee will continue until July, the fuel duty rise has been cancelled and the lifetime allowance for pensions is being abolished.
It is also important to remember the main tax changes outlined in the Autumn Statement last year. As most of these will take effect from April 2023. To keep you up to date we shared the Spring Budget summary below.
BUDGET HIGHLIGHTS
- The lifetime allowance (LTA) for pensions has effectively been abolished from 2023/24.
- A new monetary limit for the tax-free pension commencement lump sum (PCLS) will be introduced for 2023/24 of £268,275 (equivalent to 25% of the current standard LTA).
- The annual allowance for pensions will be increased by 50% to a maximum of £60,000 from 2023/24 and the money purchase annual allowance (MPAA) will rise from £4,000 to £10,000.
- The energy price guarantee is maintained at the current £2,500 level until the end of June 2023.
- The scheduled 11p a litre duty increases in petrol and diesel will not go ahead.
- Companies investing in new plant and machinery in the three years from 1 April 2023 can claim a first year allowance of up to 100% of expenditure.
- SMEs that spend 40% or more of their total expenditure on R&D can claim a tax credit worth £27 for every £100 they spend from April 2023.
- Up to 30 hours of free childcare will be available to working parents of children from the age of nine months by September 2025. Initially, from April 2024, working parents of two-year-olds will be able to access 15 hours of free childcare per week.
- The Office for Budget Responsibility forecasts that the CPI inflation rate will fall from the current 10.1% (January 2023) to just 2.9% by the end of the year.
If you would like to discuss how any of these announcements might impact you please get in touch at info@ammu.uk or call our Glasgow office on 0141 290 0262 or our Ayr Office on 01292 388 031.