With the UK economy in freefall, the Chancellor is under pressure to announce stimulus measures. There are even calls for him to reduce corporation tax, which is set to rise on April 1, 2023. He may also extend the 130% super-deduction for new plant and machinery investment, which is set to expire on March 31.
The Government’s main focus remains on lowering inflation, but Jeremy Hunt may have a few surprises up his sleeve to announce on 15 March. One issue he may address is the large number of workers over 50 who retire early, particularly in the medical field. Raising the current £1,073,100 lifetime cap on pension savings is one tax change that may encourage them to continue working.
Only time will tell what is said in the Budget on 15 March, but keep an eye out for our Budget summary report, which will be published soon thereafter.
If you have any questions or concerns about any of the points announced in the Spring Budget Statement, our tax experts are here to help you navigate the tax maze and find solutions that are right for you and your business.