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R&D tax credits: UK government ‘needs to be more ambitious’

R&D tax credits

Figures in the UK tech industry have called on the government to go further and faster with its proposed reform of R&D tax credits, announced by Chancellor Rishi Sunak in last week’s Spring Statement.

The mini-budget was largely focused on combatting the cost of living crisis facing individuals. It also unveiled some measures to support businesses, but there was some criticism from smaller tech firms and SMEs for not doing enough.

The chancellor’s proposed reform of R&D tax credits to make them “effective and better value for money” has been welcomed by the industry – but there are calls for more clarity.

R&D tax credits are financial incentives for companies in to invest in innovative research and development projects.

Under the current system, companies that have invested in the development of new products and technologies are eligible for a 13% tax credit for qualifying R&D expenditure....