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The General Election is over – What’s next for R&D tax?

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Author: Tom Mason

The 2024 General Election has now come to a close, with the Labour Party securing a win.

Businesses and their accountants currently claiming R&D tax relief or preparing a claim may be understandably concerned about the future of the scheme – but it looks like there isn’t any major cause for worry.

While its June 2024 manifesto did not specifically mention R&D tax relief, Labour’s position was one of stability, promising to invest significantly in certain sectors of R&D and make R&D activities accessible to businesses of all sizes.

It’s not clear yet whether there will be any changes to the scheme, but it is highly unlikely given that:

  • The Labour Party has previously expressed a commitment to stability for the scheme
  • The scheme itself has so recently undergone a major overhaul

What is likely, however, is a continuation of the enhanced enquiry programme by HMRC, as one of the major priorities that the new Government has expressed is a reduction in the tax gap – one of the driving forces behind the merging of the R&D tax scheme and a renewed focus on compliance.

This means that your priorities in the coming years need to be based in integrity and providing sound advice to your clients, helping them navigate enquiries or uncertainties when they arise.

It may also mean that demand will grow for accountancy practices that are able to deliver the high-quality advice that businesses require.

For tailored advice on building your R&D practice and submitting claims for clients, please contact our advisory team today.