Here are the key points from the Government's budget delivered on 15th March 2023 that effect business owners and property investors.
Our chancellor Jeremy Hunt has delivered his first budget with the aim of setting out his spending plans and taxes for the comming tax year and beyond. This comes on the backdrop of global uncertainly and the UK avoiding a recession by a narrow margin.
Inflation
The governement expect this to fall to 2.9% towards the end of 2023. This is a significant improvement to the 10% rates we are seeing at present and will bring the rate closer to the long term target of 2%.
The Economy
In November the OBR expected the UK to enter into a recession. The chancellor expects the UK to narrowly avoid entering into a recession this year. The government's borrowing costs have also fallen. Then the UK economy is set to grow from 2024 owards.
London is one of the best places in the world for female entrepreneurs.
12 new investment zones to be created across the country.
Corporation Tax
This is set to increase from 19% to 25% for profits over £250,000.
Full capital allowances will be deducted in full to encourage business investment into IT, equipment and plant & machinery.
R&D Tax Credit
Small or medium-sized businesses will be able to claim a credit worth £27 for every £100 spent on R&D. If they spend 40% or more of their total expenditure on Research and Development.
Employment
Measures introduced to remove the barriers to work for those who are disabled. Universal support scheme to help disabled people to find work by allocating £4,000 per person.
For those over 50 years old. There are 3.5m people are currently not working. The DWP midlife MOT will increase. A new apprentiship called returnaship's will focus on flexibility and improving on past experience.
Pension
The annual pension tax free allowance to increase from £40,000 to £60,000. The Lifetime Allowance has been abolished completely, which was previously set at £1.07m
Capital Gains Tax
The 'annual exemption' amount is cut from £12,300 to £6,000 from April 2023 and then down to £3,000 from April 2024.
Employment Allowance
This will be retained at the higher level of £5,000.
Other Measures
The government's energy price guarantee will be kept for a further 3 months at an average of £2,500 for a typical house.
The National Living Wage will rise by 9.7% from April 2023 to £10.42 per hour.
If you would like to know more about how this effects your business, please contact your team member directly or email enquiries@Charterwells.co.uk.