In response to the Chancellor’s 2023 Spring Budget, Peter Legge, Partner, Tax at leading business advisory firm Grant Thornton in Belfast, said:
“The Chancellor has delivered a business-friendly Budget that aims to kick-start growth and investment across the UK.
“The introduction of ‘full expensing’ from 1st April, on capital investments such as IT, plant and machinery, is a welcome replacement to the previous ‘super-deduction’ mechanism and is designed to lessen the impact of the new higher rate of Corporation Tax.
“Introduced initially for three years, the potential for the measure to become permanent is music to the ears of businesses and is set to make the UK’s plant and machinery capital allowance regime the joint most attractive across the 38 OECD member countries.
“Loss-making SME companies that are considered to be ‘R&D intensive enterprises’ will also welcome the cash-flow benefit from the payable credit rate increasing back to 14.5% which results in the receipt of £27 for every £100 of qualifying R&D investment.
“On pensions, we expected the annual tax-free allowance to rise from £40,000 to £60,000 but the abolition of the maximum lifetime tax allowance was an exceptionally generous surprise.
“All in all, the measures will be particularly welcomed by owner-managed businesses, giving them an incentive to invest and save for the future.”
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