Budget 2023: how it affects you. 

The Chancellor, Jeremy Hunt (pictured) has produced a budget largely aimed at big businesses but also focused on encouraging more people to remain in work rather than retire early.

In summary there are four key points that we’re emphasising to our clients in our Budget summary which you can download here:

1) the proposed removal of the lifetime pension limit is a positive move – and so is the increase to the annual pension allowances (from £40k to £60k).

2)The new tax relief for investment in plant and machinery provides 100% tax relief on eligible expenditure, with no cap (historically it has been £1m). Whilst this changes is welcomed, few businesses regularly invest more than £1m in plant in the first place – so it’s a little underwhelming for most of our clients.

3) It’s extremely disappointing to see the corporation hike to 25% will proceed – but understandable since they are trying to balance the books following the impact of the pandemic.

4) Extra support with childcare is definitely welcome – and this will be relief to clients and their staff.

We are advising our clients to take a look at our budget summary – and ensure they leave enough time to plan and review any changes that will need to be made to their pension strategy in particular.

Speak to Murray Patt if you need specific guidance on how these issues will affect your business and your personal finance as a company director. 

You can download our Budget summary here: Budget March 2023