Feeds

Treasury coughs £80m tax credit for R&D

Eagle pulls small biz up by scruff of its neck

Top 5 reasons to deploy VMware with Tegile

The UK government will dish up an extra £80m a year in tax credits to encourage small businesses to invest in more research and development.

From today (1 August) the total tax relief available to SMEs will be set at around £300m a year, said Exchequer Secretary to the Treasury Angela Eagle MP.

The government hopes that pumping more cash into tax credits will persuade small and medium-sized companies to spend more on developing new and improved products.

Eagle said the rate available for qualifying SMEs investing in R&D will increase from 150 per cent to 175 per cent of their outlay. The Treasury has also upped the size of a firm that can qualify for tax relief from 250 staff to up to 500 employees. The associated limits on balance sheet value and turnover will also be doubled.

“The R&D tax credit schemes are the government's most important policy in support of R&D investment by companies in the UK," said Eagle. "By increasing the value of the SME scheme by a third, we are showing our continued commitment to helping innovative UK companies invest to grow.

“Today's announcement will build on more than £1bn worth of support already provided. The increase in the size at which a company can claim under the scheme will be a huge boost for the small R&D intensive companies that will be the large innovative companies of the future.”

Presumably, it's also a move to encourage businesses in Blighty to compete more effectively on the global stage. However, whether the extra £80m represents a significant boost for UK tech firms remains to be seen.

According to a recent report from non-profit research group Rand Corporation, the US remains significantly ahead of the pack in the science and technology sector, investing some 40 per cent of the world’s total R&D spend. ®

Intelligent flash storage arrays

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Reducing the cost and complexity of web vulnerability management
How using vulnerability assessments to identify exploitable weaknesses and take corrective action can reduce the risk of hackers finding your site and attacking it.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.