While the government has already consulted on several of the clauses in Finance (No.2) Bill 2022-23, in draft legislation released on 20 July 2022, many of the measures in the final Bill reflect the Spring Budget of 15 March 2023.
The Bill includes several key measures that are important for ICAEW members advising on tax, including members both in practice and business. These measures include:
- the temporary 100% first-year allowance on capital expenditure on plant and machinery for companies for three years from 1 April 2023 (referred to as full expensing);
- changes to the R&D tax relief regime;
- abolishing the lifetime allowance charge and increasing the annual allowance for pensions;
- the introduction of the multinational top-up tax (implementing the OECD pillar two proposals); and
- the creation of investment zones that will complement freeports and offer similar direct tax benefits in designated tax sites.
The Tax Faculty plans to issue detailed guidance and support for members on all these areas in due course.
Find out more:
- Finance (No. 2) Bill - Parliamentary Bills
- Spring Finance Bill 2023
- Spring Finance Bill 2023 supporting documents
Spring Budget 2023
On 15 March 2023, Chancellor Jeremy Hunt delivered the Spring Budget. Read ICAEW's analysis and reaction.
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