Key Announcements in the UK Government’s Spring Budget

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This article outlines a summary of the key announcements from the UK Government’s Spring Budget 2023.



  • Tax free yearly pension allowance to increase from £40k to £60k from 6 April 2023
  • Money purchase annual allowance to increase from £4k to £10k from 6 April 2023
  • Lifetime pension allowance (LTA) of £1.07m will be abolished from 6 April 2024
  • Lifetime allowance charge will be scrapped from 6 April 2023.


  • Between 15 and 30 hours a week of funded childcare for children aged 9 months to school age, phased in by September 2025 (England only).


Corporation Tax (CT)

  • Chancellor confirmed CT rise will increase from 19% to 25% from 1 April 2023
  • Small profit rate CT: 19% on companies with profits under £50k
  • Main profit rate CT: 25% on companies with profits above £250K
  • Marginal relief rates apply between lower and higher CT rates.

Capital Allowances

  • Super-deductions will end on 31 March 2023. They will be replaced by Full Expensing (FE) for three years, to 31 March 2026 – providing 100% capital allowances for qualifying plant and machinery
  • FE means that companies can deduct 100% of the cost from their profits straight away – rather than more slowly over the life of the asset
  • FE also results in a 25p tax save for every £1 they invested, similar to the super-deduction
  • The ‘100% first-year allowance’ for qualifying expenditure on electric vehicle charge-point equipment will be extended until 31 March 2025 for corporation tax. For income tax it will be extended until 5 April 2025.

50% First Year Allowance (FYA)

  • Moreover, the Government has extended the 50% FYA by three years to 31 March 2026. This allowance gives taxpayers the ability to deduct 50% of the cost of other plant and machinery (special rate assets) from their profits during the year of purchase.
  • This allowance includes long life assets such as solar panels and thermal insulation on buildings.

Research & Development (R&D)

  • Eligible loss-making companies (who spend at least 40% of their total expenditure on R&D) will be able to claim £27 from HMRC for every £100 of R&D investment, instead of £18.60 for non-R&D intensive loss makers.

Creative Industry Reliefs

  • The Government has extended and enhanced the relief for various creative industries.
  • Film and TV relief will be merged to create the Audio-Visual Expenditure Credit (AVEC)
  • A new relief will be created for video game expenditure Video Games Expenditure Relief (VGEC). VGEC will attract a rate of 34%.
  • AVEC will be split in two (high-end TV and film credit rate of 34%, animation and children’s TV 39%).
  • AVEC and VGEC will be claimable for accounting periods on or after 1 January 2024.

For more details about the above budget measures visit:

For a download of the announcement presentation please click here. Click here for more finance and accounts outsourcing resources. Have a look here to see what a part time finance director may be able to do to support your business. For more tools and guidance for your business click on our resources menuGet in touch for accounting support

Disclaimer: This resource is provided as a reference guide only and we recommend seeking professional accounting advice before making decisions. Specialist Accounting Solutions Ltd accepts no liability for any errors therein or any losses or damages arising from it.

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