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Writer's pictureRobert Gourlay

UK 2023 Budget- Quick Facts.


Chancellor of the Exchequer, the Rt Hon Jeremy Hunt MP, delivered his Spring Budget on 15th March 2023, sitting down at 13:32 GMT.


Key pensions points

• The Lifetime Allowance charge will be removed from April 2023.

• The Lifetime Allowance will be abolished entirely from April 2024.

• The Annual Allowance will be raised by 50%, from GBP 40,000 to GBP 60,000 from April

2023.

• The Money Purchase Annual Allowance (for those that have flexibly accessed their

pensions) will be raised from GBP 4,000 to GBP 10,000.

• The minimum Tapered Annual Allowance will also increase to GBP 10,000 and the Threshold Income will be raised to GBP 260,000.

• The maximum Pension Commencement Lump Sum for those without relevant protections will be retained at its current level of £268,275 and will be frozen thereafter.


Key personal taxation points

• The starting rate for savings income will be frozen at GBP 5,000.


Key tax efficient savings points

• Annual subscription limits for Junior ISAs, child trust funds, and adult ISAs remain the same.

• The eligibility to manage ISAs will be restricted to financial institutions with a UK presence.


Key inheritance taxation and trust points

• The government is launching a consultation on the expansion of agricultural property relief to cover certain types of environmental land management.

• Agricultural property relief and woodlands relief from inheritance tax will be restricted to

property in the UK from 6 April 2024.

• The government will formalise and extend an existing income tax concession for low income trusts and estates, and remove some non-taxpaying trusts from IHT reporting requirements.


Tax administration and compliance

• A consultation has been launched on “Simplifying and Modernising HMRC’s Income Tax services through the tax administration framework” ending on 7th June 2023.

• A consultation will be launched on introducing a criminal offence for promoters of tax avoidance who fail to comply with a legal notice from HMRC to stop promoting a tax avoiding scheme.

• The government will double the maximum sentence for tax fraud to 14 years imprisonment.


Investment Zones

• 12 new investment zone growth clusters will be launched with a 5-year tax offer, matching those in Freeports.


To discuss this budget or to find out about our safe and efficient, international financial solutions, contact me today. I will be happy to help with whatever questions you may have.


Rob.


E: robert.gourlay@holbornassets.com T: (+6) 01151565649 W: www.rgwealthsolutions.com

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