Finance Bill 2023 received Royal Assent on 10 January 2023 and became Finance Act 2023. It is the first Finance Act to be approved by King Charles III.
The Bill was originally published on 22 November 2022 following the Autumn Statement on 17 November 2022.
The key measures are:
- Reduction in the rates of relief for R&D for SME's and increase in the R&D Expenditure credit for large companies (RDEC) for expenditure from 1 April 2023.
- Reduction in the dividend allowance to £1,000 from 6 April 2023 and £500 from 6 April 2024. See Dividend Tax
- Reduction in the Capital Gains Tax annual exempt amount to £6,000 from 6 April 2023 and £3,000 from 6 April 2024.
- Freezing of the Personal allowance, basic rate band and Inheritance Tax bands and thresholds until 2027-28.
- Reduction of the threshold at which the 45% Additional tax rate applies from £150,000 to £125,140 until 2027-28.
- Removal of the Vehicle Excise Duty exemption for electric vehicles.
- An increase to the oil and gas profits levy from 25% to 35%.
Useful guides
Finance Act 2023: tax update & rolling planner 2023-24
Tracks current consultations and other changes made during the current 2023-24 tax year.
Finance Act 2022: tax update & rolling planner 2022-23
Tracks details of the changes included in Finance Act 2022.
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