Initial reactions to the Spring Budget 2023 from our Tax experts
“The change to full expensing for capital investment is potentially seismic for business investment, however we await the detail to know what expenditure will qualify for this relief.”
Chris Riley | Head of Tax
“As expected, the Chancellor confirmed the increase in annual allowance from £40,000 to £60,000. In relation to the lifetime allowance, it was expected he would increase the allowance to £1.8m; however, he has gone further and abolished the lifetime allowance meaning the total size of a pension fund is now uncapped. But given the tapering of the annual allowance for higher earners, this will be of benefit to a limited number of taxpayers. It will be of most benefit to senior public sector workers and doctors in the NHS who have defined benefit pension schemes.”
Stephen Kenny | Personal Tax Partner
“Further changes to the R&D regime will see SME businesses who spend 40% of their total spend on R&D able to claim a credit worth £27 for every £100 spent.”
Catherine Heyes | Corporate Tax Partner
“As expected, the existing VAT registration threshold of £85,000 remains in place. Given the recent inflationary environment this is likely to result in many additional businesses having to register for VAT.”
Mark Ellis | VAT Partner
