Spring Budget 23: Annual investment allowance for firms raised to £1m

Corporation tax increase also confirmed

The annual investment allowance has been increased to £1m for small businesses in what will be a welcome move for advice firms.

Delivering the Spring Budget today (15 March), Chancellor Jeremy Hunt confirmed 99% of all businesses will now be able to deduct the full value of their investment from each year's taxable profits. ‘Full expensing' has also been introduced for the next three years meaning all money invested in IT equipment by a small business can be deducted in full from taxable profits. Hunt has confirmed the expensing will become permanent once the government is "responsibly able" to afford it and that the UK will be Europe's only country with full expensing. "The impact on the economy will be hu...