Today Chancellor Jeremy Hunt unveiled his ‘Back to Work’ March Budget. Below we summarise some of the key points.

Corporation Tax
As previously announced, increases to Corporation Tax to go ahead as planned from April 2023. The headline rate will increase to 25% on profits of more than £250,000. Companies with profits between £50,000 and £250,000 to pay between 19% and 25%.

Research and Development
Small and medium-sized businesses will be able to claim a credit of £27 for every £100 spent, if they spend 40% or more of their total expenditure on Research and Development. . 

Energy Support 
Prepayment metres charges to be brought in line with comparable direct debit charges. 

The Energy Price Guarantee (EPG) to be maintained at £2,500 for another three months. It had been due to increase to £3,000 and affects domestic properties only. 

Annual Pension Allowance and Life Time Allowance 
The Lifetime Allowance to be abolished. The annual tax-free allowance is to be increased from £40,000 to £60,000.

Investment Zones
Twelve new investment zones will be created. These new innovation clusters will be formed by local governments in partnership with a local university and will receive funding from central government. 

Fuel Duty
Fuel duty will be frozen with the 5p reduction maintained for a further year