Snap shot of the Spring Budget 2023

Published: 21/03/2023 By Hannah McCormack

Following Jeremy Hunt’s 2023 Spring Budget announcement last week we have listed the all-important key points below:

  • Tax free pension annual allowance raised to £60,000 with effect from April 2023
  • Jail sentences for tax fraud doubled from 7 to 14 years as well as a more funding given to HMRC to tackle tax evasion 
  • Cryptoassets - sales will need to be reported separately on UK tax returns from April 2024
  • Lifetime Allowance on pension contributions abolished – the lifetime allowance currently £1.07m will be removed from April 2023 before being completely gone by April 2024
  • 5p fuel reduction frozen for another year
  • Both tobacco and alcohol taxes to rise
  • Household energy cap of £2,500 a year extended until the end of June 2023
  • 30 hours free childcare for all working parents in England for children 9 months old and upwards (currently only eligible for 3 & 4 year olds) by September 2025 to be phased in by age group
  • Universal credit families to receive childcare support upfront rather than in arrears, plus new cap of £951 a month per child
  • Fitness-to-work testing implemented in order to qualify for health-related benefits
  • Universal Support is the new voluntary employment scheme for disabled people in England and Wales
  • Stricter criteria to look for work as well as increased job support for lead child carers who are on universal credit
  • As well as apprenticeships new “Returnerships” announced with extra funding to encourage the retired over 50’s to retrain and return back to work
  • Relaxing of immigration rules for 5 areas within the construction sector to ease labour shortages
  • Corporation tax paid by businesses on taxable profits over £250,000 increased to 25% (see our article here for other amounts)
  • Super-deduction tax relief replaced with 3-year full expensing’ regime, for capital allowances on qualifying plant, machinery and IT investment

Full information on the 2023 Spring Budget can be found on HRMC’s website here