Today’s Autumn Statement, delivered by the new Chancellor of the Exchequer Philip Hammond, provided comfort to North East businesses that Theresa May’s Government will continue to support R&D through the tax system.
During the statement the Chancellor announced that a new National Productivity Investment Fund will add £23 billion in high value investment over the next five fiscal years. Most notably for businesses which currently benefit from R&D tax relief; this includes a commitment to provide an additional £425m to support R&D next year, rising to £2 billion per year by 2021-22.
The precise details of how this additional support will be provided are yet to be confirmed. Details today confirm that the Government will ‘review the tax environment for R&D to look at ways to build on the introduction of the ‘above the line’ R&D tax credit to make the UK an even more competitive place to do R&D’.
This is good news for both large companies and SME companies in the North East. Large companies will receive increased support through the tax system to reduce the net cost of their R&D activities. Similarly, SME companies that are in receipt of grant funding or that carry out R&D on behalf of large companies will also enjoy increased support.
As a region that significantly under claims when it comes to R&D tax relief, this commitment to increase support should incentivise all innovative North East companies to ensure that they are maximising their entitlement to R&D tax relief.
If you would like to discuss how today’s Autumn Statement could impact on your company’s R&D tax relief claims, please do not hesitate to contact Alastair Wilson or Peter Tindale who would be delighted to assist you.