1 15 March 2023 l BUDGET @ Copyright 15 March 2023. All rights reserved. This summary has been prepared very rapidly and is for general information only. The proposals are in any event subject to amendment before the Finance Act. You are recommended to seek competent professional advice before taking any action on the basis of the contents of this publication. CONTENTS Budget highlights 1 Introduction 2 Personal taxation 3 Pensions, savings and investments 5 Capital taxes 6 Welfare and family support 7 Business taxes 8 Value added tax 12 Tax administration 13 NICs 16 BUDGET HIGHLIGHTS ■ T he 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). ■ T he 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. ■ T he energy price guarantee is maintained at the current £2,500 level until the end of June 2023. ■ T he scheduled 11p a litre duty increases in petrol and diesel will not go ahead. ■ C ompanies 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. ■ S MEs 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. ■ U p 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. ■ T he 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.
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