Business Secretary Plans a Post-Brexit Doubling of R&D Tax Relief
Business Secretary Sajid Javid took to the Financial Times this week to lay out his five-point plan for emergency corporate and personal tax cuts which he hopes will stimulate economic growth and avoid any post-Brexit recession.
Among other things, Javid is putting forward the doubling of research and development tax credits – welcome news for the UK’s businesses.
At the Momentum Group, we have consistently boasted research and development tax credits as a brilliant way of putting money back into the hands of the country’s most innovative businesses, making the UK a much more competitive place. In this new post-Brexit arrangement, competitiveness will be key to the UK’s success in the marketplace.
Javid’s announcement comes as part of the wider shift happening in the Conservative government’s post-Brexit approach to economic policy, no longer prioritising the lowering the deficit or enforcing austerity.
Chancellor George Osbourne has completely abandoned his plan to achieve fiscal surplus by 2020. Javid told the Financial Times “I don’t think it is realistic to assume that the surplus target can be held in this parliament.”
Javid mirrored Osbourne’s call for a cut in corporate tax rate to below 15%. His further strategy of tax cuts and investment allowance aims to push corporate benefit further.
While Article 50 has not been implemented, by which the UK will initiate its EU exit, the business secretary was clear that the decision made in the referendum was final, “there is no going back, it will be implemented.”
With this the new landscape to navigate, Momentum will be at the forefront in working with innovative businesses of all sizes to assist with R&D tax credits and corporate strategies.
To find out more about R&D Tax Credits contact Momentum on 028 9140 4030 or send an email to firstname.lastname@example.org