16 March 2023
Here are some of the highlights which may affect you:
Pensions
- The Lifetime Allowance (the total amount of money you are allowed to have in your pension without having additional tax charges – which is currently just over £1m) the charge is being removed from 6 April 2023
- However, the maximum amount of tax free cash you can take will be 25% of your fund value or the current LTA (whichever is the lower), so maximum is frozen at £268,275
- The Annual Allowance (the maximum total contribution that can be paid in during the year) will be increased from £40,000 to £60,000 from 6 April 2023
- Also, the Money Purchase Annual Allowance (potentially applicable if you’ve started taking pension income from a defined contribution pension) will be increased from £4,000 to £10,000
Changes for business
- The main rate of corporation tax, paid by businesses with taxable profits over £250,000, is confirmed to increase from 19% to 25%
- Reduced paperwork for international traders, who will also be given longer to submit customs forms under streamlined rules
- Apprenticeships for over 50s to attract a wealth of talent and ability back into the workplace
- Enhanced Credit for R&D of £27 for every £100 spent
Inflation
- And the last good news for today is the outlook for inflation. It is expected to be 2.9% by the end of 2023 compared to 10.1% at present.
We understand that the recent changes announced in the Budget may raise questions and concerns regarding the impact on your business.
We encourage you to reach out to our Corinthian Benefits team, who are readily available to provide guidance and support tailored to your specific needs.
