Below is a summary of this – the notes in pink are thoughts from WYCAS after a first glance at the budget. There is more information out there from organisations like Charity Finance Group, Charity Tax Group etc, but if you are a small charity based in West Yorkshire and you want to find out more about any of the changes below, do contact WYCAS at info@wycas.org.uk.

Thank you to WYCAS for sharing this helpful information.

• £100 million for charities under financial strain
• £10 million grant fund for suicide prevention

3.68 A competitive corporate tax system is a vital lever to encourage enterprise and investment. To get debt falling, at Spring Budget 2021, the government took the difficult decision to increase the headline rate of Corporation Tax to 25% from April 2023.

Note: This is the main rate - for companies with profits over £250k. Those with profits under £50k the small profits rate stays at 19%. There is marginal relief between 19% and 25% for profits between £50k and £250k.

3.124 The Budget also announces over £200 million for 16 regeneration projects in England. These projects have been assessed as high quality and will commence delivery later this year. Investment has been targeted towards the left-behind places in the Levelling Up White Paper or projects that are under £10 million to ensure quick delivery and a good spread of funding across England. All funding is subject to final subsidy checks. Projects include:

• £5.6 million in Kirklees

4.19 Support for charities and community organisations – The government will provide over £100million of support for charities and community organisations in England. This will be targeted towards those organisations most at risk, due to increased demand from vulnerable groups and higher delivery costs, as well as providing investment in energy efficiency measures to reduce future operating costs.

4.24 Suicide Prevention Voluntary, Community and Social Enterprise (VCSE) Grant Fund – The government will make £10 million available for a grant fund for suicide prevention VCSE organisations in England across 2023-24 to 2024- 25 to support people experiencing suicidal thoughts or approaching a mental health crisis

4.34 Charity Taxes – The government will restrict charitable tax reliefs to UK charities and Community Amateur Sports Clubs only from April 2023 - protecting the Exchequer and focusing 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

Note: This only affects non-UK-based organisations, more exploration will be done on this.

4.45 Capital allowances: Full expensing – From 1 April 2023 until 31 March 2026 investments made by companies in qualifying plant and machinery will qualify for a 100% first-year allowance for main rate assets. This means companies across the UK will be able to write off the full cost in the year of investment, known as full expensing. Companies investing in special rate (including long life) assets will also benefit from a 50% first-year allowance in the year of investment. Expenditure on plant or machinery for leasing is excluded from first -year capital allowances due to longstanding concerns about abuse and wide scope for error. The government will work with industry to identify possible policy solutions that appropriately mitigate these risks.

Note: No real change for our small companies as plant and machinery purchases will be below the£1m first year allowance threshold, so currently get 100% capital allowance already.

For small businesses not applying the cash basis, the Annual Investment Allowance (AIA) provides100% first-year relief for plant and machinery investments. From April 2023, this will be permanently set at £1 million, simplifying the tax treatment of capital expenditure for 99% of businesses. Larger businesses will benefit from full expensing for the next three years, simplifying claims and investment decisions.

Note: As above

4.48 Extending the higher rates of Theatre Tax Relief (TTR), Orchestra Tax Relief (OTR) and Museums and Galleries Exhibitions Tax Relief (MGETR) for 2 years – The temporary higher headline rates of relief for TTR, OTR and MGETR will be extended so that from 1 April 2023, the headline rates of relief for the TTR and the MGETR will remain at 45% (for non-touring productions) and 50% (for touring productions). OTR rates will remain at 50%. From 1 April 2025, the rates will be 30% and 35%, and on 1 April 2026 the headline rates of relief for TTR and MGETR will return to 20% and 25%. The headline rates of relief for OTR will return to 25%.

Note: The temporary rates of 45% and 50% were originally going to go down to 30% and 35% from Apr 2023 and then back down to 20% and 25% from Apr 24 so this is effectively a two year extension of this higher rate.

The 45% and 50% rates came in on 27 Oct 21. Any productions that were green lit before that date would apply the old rates of 20% or 25% to all eligible production costs even if it ran past 27 Oct 21so the relief is not apportioned. If a project was green lit after 27 Oct 21 then they are eligible to claim at the 45% or 50% rates.

However, when the rate goes down, you have to apply the rate at the time to the costs at the time so if the production crosses over those dates they will be applying different rates.

Not easy to navigate, but please get in touch with WYCAS if you would like to discuss further.

4.50 Qualifying expenditure in theatre, orchestra and museums and galleries exhibitions tax reliefs –Qualifying expenditure for theatre, orchestra, and museums and galleries exhibition tax reliefs will be changed to ‘expenditure on goods and services that are used or consumed in the UK.’ This will align the cultural Spring Budget 2023 87 reliefs with the audio-visual reliefs and ensure these reliefs remain compliant with the UK’s international obligations. Productions that have not concluded by 1April 2024 may continue to claim EEA expenditure until 31 March 2025.

You can also find NCVO's reflections on the budget on their website.