Budget 2023

by | Mar 17, 2023 | Commentary and opinion, Tax

Our analysis of the announcements in the 2023 Budget has been published here.

The majority of the tax rates and allowances were announced in the Autumn Statement, resulting in a mainly expenditure focused budget. The ‘highlights’ are:

Personal tax

  • The start of the additional rate (45%) tax band is reducing from £150,000 to £125,400 for 2023/24.
  • Also for 2023/24, the tax free dividend allowance is reducing from £2,000 to £1,000.



  • The Annual Allowance is increasing to £60,000 from £40,000, with related changes to the tapering.
  • The Lifetime Allowance Charge is being abolished, although the maximum tax free lump sum remains at 25% of the Lifetime Allowance.


Business tax

  • The corporation tax rate is confirmed at 25% from 1 April 2023 for profits over £250,000.
  • The super deduction for plant and machinery is being replaced by 100% first-year allowance for qualifying capital expenditure, without upper limit, for three years from 1 April 2023.
  • The limit on the value of shares that can be subject to CSOP options when granted to employees will be doubled to £60,000 from 6 April 2023.
  • Small Enterprise Investment Scheme limits increased from 6 April 2023.


Capital gains

  • The capital gains tax annual exempt amount is reducing from £12,300 to £6,000.
  • New accruals basis election is possible for carried interest for 2022/23 onwards.
  • Changes to the capital gains treatment of transfers on separation.


Other items

  • Energy Price Guarantee is retained at £2,500 for the average household for further three months to 1 July 2023.
  • A significant expansion to the free childcare provision is to be phased in starting in April 2024.
  • Returnerships are being introduced to encourage over 50’s back to work.


For further details, see our analysis here, or contact us directly.

Precision with personality

Let us take your worries away

Our people are what really make us stand out. The Lewis Golden team is made up of brilliant individuals with a wealth of experience and a sharp focus on the work they do.