The government has launched a consultation on simplifying the UK's research and development (R&D) tax relief system, driving innovation and growing the economy.
The consultation runs to 13 March 2023 and sets out proposals on how a single scheme could be designed and implemented.
This would replace the two R&D tax relief schemes currently in place – the Research and Development Expenditure Credit scheme and the small and medium enterprises R&D relief.
This is part of the government's ongoing R&D tax reliefs review, and follows changes announced at Autumn Statement 2022 where the generosities of the two R&D tax schemes were broadly aligned.
Victoria Atkins MP, Financial Secretary to the Treasury, said:
'We are focussed on growing the economy – with thriving businesses bringing more jobs, higher pay and more tax revenue to fund our precious public services.
'Getting R&D tax relief right and fit for the future sits at the heart of making sure the UK remains a competitive location for cutting edge research – helping new firms grow.
'I welcome views on the option to simplify the scheme, especially from those who have experience of the existing tax reliefs.'
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