Budget 15 March 2023

Corporation Tax rates from 1 April 2023:

• 19% for taxable profits below £50,000 (small profits rate)
• 25% for taxable profits above £250,000 (main rate) Marginal Relief available to be tapered between the small profits rate and the main rate.

Super deduction Allowances of 130% confirmed as ending 31st March 2023.

New 100% Capital Allowance first year tax relief (in addition to current AIA allowances) from 1 April 2023 to 31 March 2026 for Limited Companies only.

Special rate expenditure first year allowances of 50% for Limited Companies only until 31 March 2026.

Pension Lifetime Allowance to be abolished. Lifetime allowance charge will be removed from 6 April 2023 onwards.

Pension contribution Annual Allowance increased from £40,000 to £60,000 per tax year from 6 April 2023.

No change to Personal Income Tax and National Insurance contributions thresholds, these remain to be fixed at their current rates until April 2028.

National Living Wage to increase from £9.50 an hour for over-23s to £10.42 from 1 April 2023.

NMW rates to apply from April 2023:

• 21 to 22 year olds from £9.18 to £10.18 per hour
• 18 to 20 year olds from £6.83 to £7.49 per hour
• 16 to 17 year olds from £4.81 to £5.28 per hour

The Income Tax additional rate threshold (ART) lowered to £125,140 from 6 April 2023. The ART for non-savings and non-dividend income will apply to taxpayers in England, Wales, and Northern Ireland.

The Dividend Allowance reduced to £1,000 from April 2023, and to £500 from April 2024.

The Capital Gains Tax Annual Exempt Amount will reduce to £6,000 from April 2023 and to £3,000 from April 2024.