Tax Issues - UK Budget 2023
• Pensions annual tax-free allowance of £40,000 (fixed since 2014/15) is to be increased by 50% to £60,000. The allowance will continue to be tapered in respect of high income individuals.
• The cap on the amount workers can accumulate in pensions savings over their lifetime before having to pay extra tax (currently £1.07m) has been abolished.
• The main rate of corporation tax, paid by businesses on taxable profits over £250,000, is set to rise from 19% to 25% in April.
• Companies now able to “expense” investment in new machinery and technology to lower their taxable profits.
• An enhanced credit has been introduced for small and medium-sized businesses who spend 40% or more of their total expenditure on qualifying research and development. A credit worth £27 for every £100 spent can be claimed.