On 15th March, Chancellor Jeremy Hunt announced the following in his statement:
Pension
- From April 2023 the Annual Allowance will increase from £40,000 to £60,000 for individuals.
- Income level for the tapered AA to apply will increase from £240,000 to £260,000. The minimum Tapered Annual Allowance also increases from £4,000 to £10,000.
- The Money Purchase Annual Allowance (MPAA) where an individual starts to take money from a defined contribution pension pot, MPAA increases from £4,000 to £10,000.
- The Chancellor announced the abolition of the The Lifetime Allowance (LTA).Further detail about this measure will be announced.
Corporation tax
- A new ‘small profits rate’ of corporation tax of 19% will apply where profits are £50,000 or less.
- For companies whose profits above £250,000 will pay tax at the main rate of 25%.
- Marginal rate applies for profits between £50,000 – £250,000.
Capital expenditure for companies
- Companies will have 100% relief on capital expenditure which falls within the main rate of capital allowances and 50% tax relief to be obtained on expenditure which would fall within the special rate pool for capital allowance purposes. Relief will only be obtained if the equipment is new.
Also announced :
- The Chancellor has increased the allowances for foster care income. The new allowances comprise a fixed amount of £18,140 per annum from £10,000, a weekly amount of £375 increased from £200 for under 11’s and £450 for over 11s.
- 30 hours a week of free childcare for 38 weeks a year for eligible working parents of children aged nine months to three years to be rolled out in stages from April 2024.
- Fuel duty remains frozen maintaining the 5p cut across the UK.
- The Energy Price Guarantee has been extended by three months to the end of June, ensuring the average household continues to pay no more than £2,500 per annum on their energy bills.