Spring Budget: 2023 Policy
Costings
Chapter
1
Introduction 7
Chapter
2 Policy
Costings 8
DWP: pay Universal Credit childcare support upfront for parents
moving into work 8
DWP: increase the maximum support available in Universal Credit
for childcare costs 9
DWP: employment programme for disabled people 10
VAT: Extend the zero rate for prescriptions to Patient Group
Directions 11
VAT: extend the exemption for medical care services supervised by
healthcare professionals to pharmacists 12
DWP: remove the couples Administrative Earnings Threshold 13
DWP: additional support and conditionality for carers of young
children 14
Lifetime Allowance (LTA): remove charge from April 2023 and
abolish from April 2024 15
Annual Allowance (AA): increase to £60,000 and allow Pension
Input Amount aggregation between open and closed public service
pension schemes from April 2023 16
Money Purchase Annual Allowance (MPAA): increase to £10,000 from
April 2023 17
Capital allowances: 100% full expensing for main rate assets and
50% First Year Allowance for special rate assets for three years
18
R&D tax reliefs: additional tax relief for R&D intensive
SMEs 19
R&D tax reliefs: delay implementation of overseas
restrictions by one year 20
Creative Reliefs: Reform of Audiovisual Tax Reliefs into
Expenditure Credits with increase in Rates 21
Cultural reliefs: extend higher rates of the theatre, orchestra
and museums and galleries tax reliefs for two years 22
Community Investment Tax Relief: increase the amount accredited
CDFI bodies can raise 23
Real Estate Investment Trusts: implement Edinburgh reforms to
increase attractiveness of regime 24
Fuel Duty: 12 month extension to the 5p cut in rates and no RPI
increase in 2023-24 25
Alcohol Duty: freeze rates until August 2023 then uprate by RPI
and increase Draught Relief to 9.2% for beer and cider and 23%
for wine, other fermented beverages and spirits 26
Energy Price Guarantee: extend the support rate at £2,500 until
30 June 2023 27
Energy Bills Discount Scheme: support for domestic heat network
consumers on non-domestic contracts 28
Climate Change Agreement scheme: extend for two years - open to
new entrants and increase buy-out price to £25/tCO2e 29
DWP: increase the Severe Disability Premium Transitional Element
30
DWP: maintain the Universal Credit surplus earnings threshold at
£2,500 in 2023-24 31
Help to Save: extend scheme for 18 months 32
Public Works Loan Board: new discounted Housing Revenue Account
rate 33
Aggregates levy: maintain rate at £2.00 per tonne for 2023-24 34
HGV levy: introduction of new reformed levy from August 2023 35
Vehicle Excise duty: freeze rate for HGVs for 2023-24 36
Individual Savings Accounts: maintain annual subscription limit
at £20,000 for 2023-24 37
Starting rate limit for savings income: maintain at £5,000 for
2023-24 38
Tobacco Duty: increase duty on hand rolling tobacco duty by an
additional 4% and the minimum excise duty by an additional 1% 39
Gaming duty: maintain Gross Gaming Yield bands for 2023-24 40
Qualifying Care Relief: increase from April 2023, index by
inflation from April 2024 41
HMRC: Investment in debt management capability 42
Capital Gains: change to assessment time period 43
Amending Self Assessment forms for cryptoassets 44
Introducing an Elective Accruals Basis for the Carried Interest
Rules 45
Low income trusts and estates: simplification measures to
reduce reporting and administration 46
Charitable Reliefs: withdraw tax reliefs from non-UK charities
and their donors and suppliers from April 2023 47
Stamp Duty Land Tax: amendment to the Registered Social
Landlord Exemption 48
NHS Pensions: new retirement flexibilities including partial
retirement and pensionable reemployment 49
Energy Bills Discount Scheme 50
Electricity Generator Levy: index benchmark price and update
rules on costs 51
Making tax digital for income tax self assessment and digital
prompts: phased implementation from 2026 52
Penalty reform for income tax Self Assessment: phased
introduction from 2026 53
VAT: Northern Ireland second-hand car market support scheme 54
National Insurance contributions: impact of maintaining the Lower
Earnings Limit and Small Profits Threshold at
2022-23 levels 55
Re-insurance of long term insurance business: address possible
tax mismatch and clarify scope of existing legislation 56
Changes to tariff rates since Autumn Statement 2022 57
Scottish Green Freeports 58
Tax exemptions for Group Litigation Order scheme payments related
to the Post Office Horizon scandal 59
Disregarding compensation payments related to the Post
Office Horizon scandal from benefit means tests 60
Council tax precepting authorities: reserves implications of
referendum principles 61
Mortgage Guarantee Scheme: extend for one year 62
Annex A
Indexation in
the public
finance forecast
baseline 63
