Investment in Innovation - £2bn Boost for R&D Tax Relief
Government Announce £2 billion Boost for R&D Tax Relief Initiative
In his Autumn Statement on Wednesday 23rd November 2016, Chancellor of the Exchequer Philip Hammond announced a massive £2 billion per year increase in research and development funding for UK businesses.
This increase will bring a welcomed tax incentive as more innovative businesses will be able to take advantage of what is the UK’s most generous tax relief initiative. This, coupled Government’s long-term planned commitment to their R&D tax relief initiative until for a considerable time, should embolden UK businesses to continue to engage and invest in innovative activity.
The Chancellor’s announcement serves as a confidence boost at a crucial time as the UK economy weathers the uncertainty of Brexit and the political negotiations therein.
In a speech delivered in mid-November, Prime Minister Theresa May explained that she would like to make the UK the
“global go-to place for scientists, innovators and tech investors”
and is hoping that this new pledge will put Britain at the forefront of research and development.
As it currently stands the initiative is really working, as evidenced by government research which highlighted that for each £1 spent on R&D Tax Credits between £1.53 and £2.35 of additional investment in the UK was stimulated.
May described her aim
“not simply for the UK to have the lowest corporate tax rate in the G20, but also one that is profoundly pro-innovation”.
A further Treasury review of R&D Tax Credits is now pending to see whether the expense can be pushed further above the current £2.5 billion. This, combined with aims to drop the UK corporation tax rate to 17% by 2020, and Northern Ireland’s corporation tax being reduced to 12.5% in 2018, is helping the economy in what many expected to be uncertain times – confident businesses even as politicians trigger Article 50.
With 100s of successful claims by Momentum’s R&D tax credit division, which has resulted in tens of millions in enhanced R&D claims, this is fantastic news for UK firms that show innovation. As more companies in Northern Ireland and across Britain seek to avail of the Government’s R&D initiative, Momentum aims to be at the forefront in enabling businesses to engage effectively with its unique processes.
To find out more on R&D Tax Credits, or to establish if The Momentum Group can help you with your claim, then telephone today on 028 9140 4030 to avail of a free no obligation meeting.
To find out more about R&D Tax Credits contact Momentum on 028 9140 4030 or send an email to email@example.com