Small Cap Value Report (Wed 15 Mar 2023) - BMY, HYVE, KCT, CAU, KWG

Good morning from Paul amp; Graham!

Budget Day today 12:30 - I’ll watch it on TV and quickly type up the main points here. A reminder that we don't do politics here - just facts amp; figures of interest to investors.

My notes from the Chancellor’s speech

(not comprehensive, I’ve just noted the biggest points, hopefully accurately)

For investors the most important points by far are re pensions -

Tax-free allowance for what we can put into our pension pots goes up from £40k to £60k p.a.

Pensions Lifetime Allowance, which caps the size of pension schemes has been abolished altogether! (currently c.£1m. It was rumoured to be going up to £1.8m). This makes our SIPPs very much more attractive, and could be good for equity markets. The reason it’s been done is to stop incentivising more experienced workers to leave the labour market with early retirement (especially senior doctors). Although will the next Labour Govt reverse this change I wonder? Note that the maximum tax-free lump sum will remain at £268k.

Corporation Tax - 19% rate didn’t generate enough investment. So sticking with the increase to 25%, but introducing 100% capital allowances (for 3 years, then hopefully permanent) for IT, plant amp;...