A formal consultation on the support R&D tax credits provide for innovation and the proposals of the Dyson Review was held in 2010.
A summary of responses to that consultation was published in June 2011, and at the same time, the Government announced a further consultation.
Issued: 10 June 2011
Open date: 10 June 2011
Close date: 02 September 2011
The 2011 Budget contained a number of announcements on reforms to the R&D tax credits schemes.
The Government has published its response to the 2010 R&D tax credits consultation which closed on 22 February 2011.
The document also includes the Government’s recommendation for further consultation on R&D credits.
This consultation is part of the corporate tax reform process and seeks views on proposals to simplify the schemes and make them more effective. These include the relief for Qualifying Indirect Activities; how to give relief for subcontracted ‘routine’ activities; the removal of the PAYE/NICs cap and potential changes to the ‘going concern’ definition.
The Government would also welcome comments on the proposal put forward by a number of companies to move from the current ‘superdeduction’ system to one which delivered a credit against tax.
All interested parties are encouraged to engage fully with the consultation, in order to ensure that both the SME and large company schemes are effective in encouraging research and development by UK companies.
To download the document please click here
