Spring Budget 2023 – Key Announcements | HK Wealth

• The lifetime allowance – currently £1.07m – to be abolished
• The tax-free annual allowance for pension pots to be raised from £40,000 to £60,000
• Money Purchase Annual Allowance to increase to £10,000 from April 2023

Taxes

• The 5p reduction to fuel duty to be extended for another 12 months
• Duty on draught products in pubs to be up to 11p lower than the duty in supermarkets

Businesses

• Corporation tax to go up from 19% to 25% for companies with over £250,000 in profits
• Every pound invested by businesses in machinery, plans or IT equipment to be deducted in full from taxable profits
• Twelve new Investment Zones to be created, backed by £80m of investment over five years

Childcare

• Thirty hours of free weekly childcare for working parents to be extended to children aged under three

Energy

• Energy Price Guarantee extended for three months until the end of June
• Prepayment meter charges to be brought into line with direct debit charges

Disability support

• Work Capability Assessment to be abolished and a new voluntary employment scheme for disabled people called Universal Support to be introduced

Defence

• Defence budget to increase by £11bn over the next five years

Economy

• The Office for Budget Responsibility (OBR) believes the UK will not enter a technical recession this year
• According to OBR estimates, the UK economy will contract by 0.2% this year, and then expand by 1.8% in 2024, 2.5% in 2025, 2.1% in 2026 and 1.9% in 2027

More details to follow.