Feeds

Treasury coughs £80m tax credit for R&D

Eagle pulls small biz up by scruff of its neck

Build a business case: developing custom apps

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. ®

The Power of One Infographic

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
Bose says today IS F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.