# Finance (No. 2) Act 2023, Paragraph 1: Transitional relief for substance-based income exclusion

Extent: E+W+S+N.I.

(1) Section 195(4) (payroll carve-out amount) has effect for an accounting period that commences in a year listed in following table as if for “5%” there were substituted the specified percentage for that year—
Year
Specified percentage
2023
10%
2024
9.8%
2025
9.6%
2026
9.4%
2027
9.2%
2028
9.0%
2029
8.2%
2030
7.4%
2031
6.6%
2032
5.8%
(2) Section 195(5) (tangible asset carve-out amount) has effect for an accounting period that commences in a year listed in following table as if for “5%” there were substituted the specified percentage for that year—
Year
Specified percentage
2023
8%
2024
7.8%
2025
7.6%
2026
7.4%
2027
7.2%
2028
7.0%
2029
6.6%
2030
6.2%
2031
5.8%
2032
5.4%

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Source: https://www.legislation.gov.uk/ukpga/2023/30/schedule/16/paragraph/1 (the official version)
Page: https://openlegislation.uk/finance-no-2-act-2023/schedule-16/paragraph-1
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.