The government has published a draft of Finance Bill 2023 with details of tax changes due to come into effect from April including a 6% hike in corporation tax, end of lifetime allowance and full expensing rules
The new Finance Bill published today introduces three new taxes, taking the total number of taxes introduced this century to 24, warns the Chartered Institute of Taxation, while the Bill runs to 478 pages, the longest since 2017.
The measures in the Spring Finance Bill 2023 include two new capital allowances – full expensing and a 50% first year allowance, which will cost taxpayers £27bn over the next three years and amounts to an effective £9bn a year tax cut for companies.
Full expensing lets taxpayers deduct 100% of the cost of certain plant and machinery investments from their profits before tax. It is available from 1 April 2023 to 31 March 2026. It will save businesses up to 25p in every £1 of qualifying investment and is for main rate assets – such as construction, warehousing and office equipment.
