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In a speech at the Government’s inaugural UK International Investment Summit, Chancellor Rachel Reeves reaffirmed the Treasury’s commitment to R&D tax reliefs – highlighting the scheme’s role in incentivising innovation.
Speaking on 14 October, Reeves said: “We will maintain a world-leading capital allowances offer […]. We will maintain the current rates for the research and development reliefs which provide generous support for innovation.
“This is a vital step, to deliver certainty and support businesses to grow.”
The announcement, says randd uk, which delivers expert R&D tax advice to accountancy firms and their clients, makes a clear statement in favour of R&D tax relief and demonstrates the Government’s ongoing commitment to rewarding and encouraging innovation in the UK economy.
It also backs the firm’s prediction that the Autumn Budget will not usher in sweeping changes to the R&D tax system, providing much-needed stability to claimants as R&D continues to be a target area for growth and investment.
Ryan Sian, Managing Director at randd uk, said: “It’s a fantastic sign for the R&D sector that the Chancellor has affirmed her support – and that of the Government – for R&D tax reliefs and credits.
“The scheme itself, as well as many claimants, has been subject to a lot of scrutiny in recent years, with HMRC steadily ramping up the number of investigations into claims and the evidence required to make a successful one.
“R&D tax credits and reliefs are designed to support the most innovative businesses, but we know that some businesses have struggled to access them or have been reluctant to submit a claim.
“However, the Chancellor’s statement suggests this could be a significant turning point for R&D tax.
“Considering the Government’s pledge to deliver investment to key industries, including clean energy, it seems that R&D work is going to be critical to economic growth moving forward – with R&D tax reliefs, backed by the Treasury, in place to incentivise and facilitate innovation.”
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