Budget 2023

In the coming months, we'll outline how businesses can navigate the economic challenges and opportunities. Here we summarise key points from the much anticipated 2023 budget. 

Business and trade

• Main rate of corporation tax, paid by businesses on taxable profits over £250,000, confirmed to increase from 19% to 25%.
• Companies with profits between £50,000 and £250,000 to pay between 19% and 25%.
• Companies able to deduct investment in new machinery and technology to lower their taxable profits.
• Tax breaks and other benefits for 12 new Investment Zones across the UK, funded by £80m each over the next five years.
• Reduced paperwork for international traders, who will also be given longer to submit customs forms under streamlined rules.

Taxation and wages

• Cap on amount workers can accumulate in pensions savings over their lifetime before having to pay extra tax (currently £1.07m) to be abolished.
• Tax-free yearly allowance for pension pot to rise from £40,000 to £60,000 - having been frozen for nine years.
• Fuel duty frozen - the 5p cut to fuel duty on petrol and diesel, due to end in April, kept for another year.
• Alcohol taxes to rise in line with inflation from August, with new reliefs for beer, cider and wine sold in pubs.
• Tax on tobacco to increase by 2% above inflation, and 6% above inflation for hand-rolling tobacco.