The primary rate of corporation tax will increase from 19% to 25% from April 2023. Companies with a profit below £50k will remain at the same rate of 19%. Profits between £50k to £250k will have a tapered rate from 19% to 25%.
The super-deduction scheme will end on 31 March 2023 and replace the new full expensing allowance. This provides 100% tax relief on qualifying plant and machinery costs.
The Government also introduced a 50% first-year allowance for special rate plant and machinery, including long-life assets.
The Government has confirmed that the 100% first-year allowance for electric vehicle charge-point equipment will be extended until 31 March 2025 for corporation tax and 5 April 2025 for income tax.
From 1 April 2023, a higher rate of relief for loss-making R&D-intensive SMEs will be introduced. SME companies whose qualifying R&D expenditure constitutes at least 40% of their total expenditure will be able to obtain an effective credit of 27p for every £1 of qualifying R&D expenditure.
Two new categories of qualifying expenditure will be created for data licences and cloud computing services.
It has also been announced that all R&D claims filed from 1 August 2023 will need to be filed using the new digital forms.
Twelve investment zones will be established across the UK, with access to £80 million over five years. These locations include West Midlands, Greater Manchester, the North-East, South Yorkshire, West Yorkshire, East Midlands, Teesside, and Liverpool.
UK film and TV industry will benefit from an increase in tax breaks and the maintenance of the qualifying threshold. From January 2024, film and TV expenditure credits will be increased from 25% to 34%.
The Government is simplifying the process of granting options under an EMI scheme. From April 2024, the Government will extend the deadline for a company to notify HMRC of the grant of an EMI option from 92 days following the grant to 6 July following the end of the tax year.
There were no changes to previously announced Income Tax and National Insurance Contribution thresholds or rates.
The Government will abolish the Lifetime Allowance in future Budgets. It currently stands at £1,073,100. However, the amount that an individual can contribute tax-free to their pension fund is to be raised from £40,000 to £60,000 per annum from April 2023.
The Government has announced that fuel duty will be frozen, and a 5p reduction will be maintained for another year.
From April 2024, parents will be granted 30 hours of free childcare to cover one and two-year-olds.
The Energy Price Guarantee for households will continue at the current rate for three further months to June 2023, limiting the typical household energy bill to £2,500 per annum. The Energy Bills Relief Scheme, which supports businesses and other non-domestic energy users, will be replaced by the Energy Bills Discount Scheme by 31 March 2024.
Get started with a free consultation to find out how we can help.