Chancellor Jeremy Hunt delivered his Spring budget yesterday, which he termed a “Budget for Growth”. The first headline statement was that the UK will not enter a technical recession this year. Mr Hunt also announced an expected fall in inflation from 10.7% to 2.9% by the end of 2023.
The key personal tax points to take away from today’s announcements are:
-
- The annual allowance for pension savings is set to increase from £40,000 to £60,000 from April 2023;
- The tapered annual allowance (the minimum allowance available to the highest earners) has been increased from £4,000 to £10,000;
- The adjusted income threshold has been increased from £240,000 to £260,000 – from April 2023, fewer taxpayers will be caught by the tapered annual allowance mentioned above;
- The pensions lifetime annual allowance has been removed from April 2023, with a view to abolishing it completely from April 2024;
- The starting rate for savings income remains at £5,000 for the 2023/24 tax year;
- ISA annual subscription limits remain unchanged at £20,000.
- The annual allowance for pension savings is set to increase from £40,000 to £60,000 from April 2023;
By way of reminder, a number of critical tax changes which will be effective on 6 April 2023 were announced in Mr Hunt’s Autumn Statement in November. Those changes are summarised by my colleague, David Windram, in his article covering the Autumn statement 2022.
Murray Beith Murray, Edinburgh
If this article has raised any questions or you would like to discuss your affairs with our specialist tax advisors then please complete our contact form or call 0131 225 1200.
Murray Beith Murray is a private client practice, made up of specialist lawyers from a variety of legal disciplines, including experts in asset protection and estate planning. The firm was established in 1849, as advisors for generations of clients, committed to our values of integrity, expertise and trust. This aim and these values continue to this day as does our commitment to be here when you need us.