UK Government – Spring Budget 2023 – Other Measures

Other Measures

Vehicle Excise Duty (VED) Uprating & Heavy Goods Vehicles (HGV) VED freeze

The UK government will uprate VED rates for cars, vans and motorcycles in line with RPI from 1 April 2023. To support the haulage sector, VED for HGVs will remain frozen for 2023-24.

Reform of HGV Levy

Following consultation in 2022, the UK government will introduce a new reformed HGV levy from August 2023 following the planned end of the current levy suspension period. The reforms to the HGV levy are a further step towards reflecting the environmental performance of the vehicle. The UK government remains committed to ensuring that the levy applies to all HGVs using the UK road network.

Gaming duties

The Gross Gaming Yield bandings for gaming duty will be frozen from 1 April 2023

income Tax Relief Available to Foster Carers and Shared Lives Carers

The UK government is increasing the amount of income tax relief available to foster carers and shared lives carers. The threshold of income at which qualifying carers begin paying tax on care income will be increased to £18,140 per year plus £375 to £450 per person cared for per week for 2023-24 and these thresholds will then be index-linked, representing a tax cut worth approximately £450 per year on average.

Geographical Scope of Agricultural Property Relief and Woodlands Relief from Inheritance Tax

The UK government will restrict the scope of agricultural property relief and woodlands relief from inheritance tax to property in the UK from 6 April 2024.

Charity Taxes

The UK government will restrict charitable tax reliefs to UK charities and Community Amateur Sports Clubs only from April 2023 to focus UK taxpayer money on UK charities.

European Union (EU) and European Economic Area (EEA) charities that HMRC has previously accepted as qualifying for charity tax reliefs before 15 March 2023, will have a transitional period until April 2024.

Simplification for Trusts and Estates

To simplify administration, the UK government will formalise and extend an existing income tax concession for low income (less than £500) trusts and estates and provide further changes to make calculations and reporting more straightforward.

HMRC also intend to make changes to inheritance tax regulations to remove non-taxpaying trusts from reporting requirements.

Help to Save

The UK government will extend the Help to Save scheme by 18 months, on its current terms, until April 2025. A consultation will be launched in the interim to seek views on longer term options to support low-income savers.

Freezing Savings Tax Reliefs

The starting rate for savings will be frozen at £5,000, enabling individuals with less than £17,570 in employment income to receive up to £5,000 of savings income free of tax.

Annual subscription limits for Junior Individual Savings Accounts (ISA) and Child Trust Fund accounts will remain at £9,000.

The annual subscription limit for adult ISAs will remain at £20,000.

Taxation of New Social Security Benefits

The UK government is introducing a new power to enable the tax treatment of new payments, or new top-up welfare payments, introduced by the devolved administrations, to be confirmed as social security income.

Taxation of Scottish Government Carers Support Payment

The UK government will clarify the tax treatment of the Scottish Government’s Carer Support Payment as taxable as a social security income. The Carer Support Payment was announced by the Scottish Government on 7 February 2023.

Investment Zones

The UK government is launching the refocused Investment Zones programme to catalyse 12 high-potential knowledge-intensive growth clusters across the UK, including four across Scotland, Wales and Northern Ireland.

English Investment Zones will have access to interventions worth £80b over five years, including a single five -year tax package for businesses in Investment Zones and grant funding to address local productivity barriers.  The government has invited local partners in eight areas in England to begin discussions on establishing Investment Zones.

DLUHC is working closely with the devolved administrations to establish how Investment Zones in Scotland, Wales and Northern Ireland will be delivered. Further details will be announced in due course.

Edinburgh Festivals

The UK government is providing, subject to the usual business case process, up to £8.6 million of funding for cultural festivals in Edinburgh, including the Edinburgh Fringe.

Cloddach Bridge

The UK government is providing £1.5 million to Moray Council, subject to business case, to help fund repairs to Cloddach Bridge in Moray, Scotland.

The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice.  Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.

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