In keeping with promises made during the March 2017 budget, companies investing in innovation will continue to be supported by the UK Corporate Tax regime and funding structures.
In today’s budget the Chancellor announced:
- an allocation of a further £2.3 billion for investment in R&D.
- an increase the main R&D Tax credit to 12%. Taking the first strides towards the ambition of our Industrial Strategy to drive up R&D investment across the economy to 2.4% of GDP.’
- establish a new £400m charging infrastructure fund an extra £100 million in Plug-In-Car Grant, and £40 million in charging R&D to assist in the UK’s development of electric and driverless vehicles.
- The video games industry in the UK will get a £4 million funding boost over the next four years, allowing start-ups to turn ideas into reality
It was stated that ‘by continuing to invest in Britain’s infrastructure, skills and R&D we will ensure the recovery in productivity growth that is the key to delivering our vision of a stronger, fairer, more balanced economy. And the assurance to the next generation of their economic security.’
Claims for R&D relief are at an all-time high, the Chancellor clearly sees the RDEC regime as key to the continued support to those businesses whose daily activities are high risk and bring sector wide advantages.
It is fantastic news that the RDEC benefit will increase, the uplift in the rate will mean that the effective benefit of the RDEC regime will be just short of 10% of expenditure. This generous relief will no doubt assist to incentivise investment into innovation, key to the economy.
If like many companies you are wondering how the above impacts you and your investment into development projects, the time has never been more optimal to contact our team.
Speaking to our team of specialists at R&D Tax Solutions will enable you to determine whether your business matches the necessary criteria and whether any R&D tax credits can be claimed for the projects you have conducted. Contact us today on 0161 298 1010 for more details about your R&D claim.