๐ฆ๐ฝ๐ฟ๐ถ๐ป๐ด ๐๐๐ฑ๐ด๐ฒ๐ ๐ฎ๐ฌ๐ฎ๐ฏ
Capital Allowances – To assist businesses to sustain their investment levels, the Chancellor announced a substitute for the capital allowance super deduction, which is set to expire on March 31, this year.
New schemes-
Full Expensing (FE) – From 1 April 2023 to 31 March 2026, businesses can deduct 100% of the cost of certain plants and machinery from their profit before tax. The Chancellor expressed that he hopes to make full expensing permanent in the future.
First-Year Allowance (FYA) – This allows companies to deduct 50% of the cost of other plants and machinery, known as special rate assets from their profits during the year of purchase. This includes long-life assets such as solar panels and thermal insulation on buildings. This scheme has also been extended for three years until 31 March 2026. For each year following the first year, 6% of the remaining cost will be written off via Writing Down Allowances.
Corporation tax – Though the Chancellor didnโt announce any changes to the previously announced rise to Corporation Tax.
Businesses with a larger turnover may feel the effects of the main rate of corporation tax increasing to 25% from 1 April 2023 for businesses with profits exceeding ยฃ250,000.
Research & Development โ The proposed change restricting the inclusion in claims of some activities carried out outside of the UK has been deferred for a year. Enhanced payable tax credits will be available to SMEs where 40% or more of their expenses are for R&D.
Pension contributions: The maximum annual contribution an individual can make into a pension scheme with tax relief will increase from ยฃ40,000 to ยฃ60,000 from 2023.
Pension Lifetime Allowance โ Currently, there are tax charges where the value of an individualโs pension pot exceeds ยฃ1,073,100. That has now been scrapped, allowing individuals to accumulate unlimited pension funds.
Fuel Duty โ Fuel duty will be frozen at current rates for a further 12 months, until April 2024.
Alcohol duty โ The duty charged on draught beer and cider will be cut from August 2023 in what was optimistically called a โBrexit Pubs Guaranteeโ.