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. ®

Build a business case: developing custom apps

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

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.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Scale data protection with your virtual environment
To scale at the rate of virtualization growth, data protection solutions need to adopt new capabilities and simplify current features.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
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?