Spring Budget 2023 - clear incentives for businesses investing in their futures
Spring Budget 2023
Spring Budget 2023
Vishal Chopra, Scotland head of tax at KPMG UK, said:
“Today’s Budget reflected a calmer footing when it comes to public finances than last Autumn’s, a situation which has resulted in no significant tax rate cuts or tax rises, but which did include some clear incentives for businesses investing in their futures” “
The Chancellor gave an upbeat forecast on inflation and announced that a technical recession was now not likely this year, news which will be welcomed by businesses and individuals.
“With an ongoing leadership race for Holyrood’s top job, this Budget gives the incoming First Minister an indication of how a new look Conservative leadership is approaching the economy.”
On announcements for business.
“In terms of business taxes, the planned increase to the headline Corporation Tax rate to 25% is going ahead despite concerns over the impact that this may have on UK competitiveness and investment.
“The big news in corporate taxation focused on capital expenditure where full expensing for qualifying spend on plant and machinery for the next three years has been introduced, as well as an enhanced tax credit in the R&D regime for certain small and medium sized enterprises.
“The Chancellor confirmed plans for an investment zone in Scotland with a focus on growth in five key sectors: life sciences, creative industries, digital technology, advanced manufacturing, and green industries where Scotland already has glowing credentials.”
Back to work
“Getting people back to work was a key area of focus, with the Government particularly concerned about the over 50s choosing to take early retirement. We saw an increase in pensions annual tax-free allowance and a complete abolishment of the pensions lifetime allowance, as well as new apprenticeships for over 50s, and significant funding to childcare provision to get new parents back into work.”
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About KPMG UK
KPMG LLP, a UK limited liability partnership, operates from 20 offices across the UK with approximately 17,000 partners and staff. The UK firm recorded a revenue of £2.72 billion in the year ended 30 September 2022.
KPMG is a global organization of independent professional services firms providing Audit, Legal, Tax and Advisory services.