BUDGET 2023
The Chancellor presented his spring statement on 15th March 2023. This article focuses on issues likely to affect you and your business. Please note when we refer to ‘spouse’ this includes spouses and civil partners.
1. Personal Allowance and Tax Bands The income tax personal allowance and the 20% basic rate band will be fixed until April 2028. The personal allowance is reduced for those with ‘adjusted net income’ over £100,000.
The reduction is £1 for every £2 of income above £100,000. There is no personal allowance where adjusted net income exceeds £125,140.
2. UK State Pension Check In general, to qualify for the full state retirement pension, an individual must have 35 qualifying years from their national insurance contribution paid. Individuals may wish to make voluntary contributions to make up any shortfall for these purposes.
32
pharmacyinfocus.com
Normally this is only possible for the past 6 tax years however, up to 31 July 2023 there is a temporary extension in place to allow individuals to make up any gaps from 6 April 2006.
Individuals should check their national insurance record and consider if any voluntary contributions should be made.
3. Pension Tax Limits This measure supports the government’s efforts to encourage inactive individuals to return to work, in particular those aged 50 and above, and it removes incentives to reduce hours or leave the labour market due to pension tax limits.
Legislation introduced in Spring Finance Bill 2023 effective from 6 April 2023. This will: • Increase the Annual Allowance from £40,000 to £60,000.
• Increase the Money Purchase Annual Allowance from £4,000 to £10,000.
• Increase the income level for the tapered Annual Allowance from £240,000 to £260,000.
• Remove the Lifetime Allowance Charge.
4. Chargeable gains: separated spouses Under previous legislation where spouses separated, no gain/no loss treatment on the disposals of assets was only available for disposals made in the remainder of the tax year in which they cease to live together.
After that, transfers were treated as normal disposals for CGT purpose.
From effect 6 April 2023 legislation allows those separating up to 3 years, after the year they cease to live together, to make a no gain no loss transfer of assets and an unlimited time when assets are subject to a formal divorce agreement.
If there is anything in this article that affects you – or somebody you know – please speak to Steven McVitty for independent professional advice.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48
