Chancellor Jeremy Hunt presented a “Budget for Growth”, after the Office for Budget Responsibility predicted that the UK economy will perform better than expected this year with inflation continuing to fall. We have summarised the changes that were outlined and we hope this will help you to better understand the UK’s current position. Here are some key points to note:
• Tax on dividends, where taxable, will increase by 1.25% from 6 April 2023.
• The Annual Allowance for pensions has increased from £40,000 to £60,000.
• The pensions Lifetime Allowance charge abolished.
• Limitations to the maximum an individual can claim as a Pension Commencement Lump Sum to 25% of the current Lifetime Allowance (£268,275), except where previous protections apply.
• The expected increase in the rate of corporation tax for many companies from April 2023 to 25% will go ahead.
• From April 2023, companies will be able to raise up to £250,000 of Seed Enterprise Investment Scheme (SEIS) investment, a two-thirds increase.
• The annual investor limit will be doubled to £200,000 for SEIS.
• No changes to the current rates of CGT have been announced.
• Inheritance Tax nil-rate bands will remain fixed until April 2028.
You can view our summary HERE and if you have any questions feel free to contact us.