The government has launched a consultation on simplifying the UK's research and
development (R&D) tax relief system, driving innovation and growing the economy.
The consultation runs to 13 March 2023 and sets out proposals on how a single
scheme could be designed and implemented.
This would replace the two R&D tax relief schemes currently in place – the
Research and Development Expenditure Credit scheme and the small and medium
enterprises R&D relief.
This is part of the government's ongoing R&D tax reliefs review, and follows
changes announced at Autumn Statement 2022 where the generosities of the two R&D
tax schemes were broadly aligned.
Victoria Atkins MP, Financial Secretary to the Treasury, said:
'We are focussed on growing the economy – with thriving businesses bringing
more jobs, higher pay and more tax revenue to fund our precious public
services.
'Getting R&D tax relief right and fit for the future sits at the heart of
making sure the UK remains a competitive location for cutting edge research
– helping new firms grow.
'I welcome views on the option to simplify the scheme, especially from those
who have experience of the existing tax reliefs.'
Internet link: GOV.UK