R&D tax changes: It took a long time coming, but worth waiting for says EY

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Chris Sanger, Head of Tax Policy at EY, said: “Research and Development is a long term business and today saw the announcement of an important change to the tax regime that had been wanted for some time.  The Chancellor stated that the Large Company Research & Development Tax Credit would finally live up to its name and change from being an extra deduction against profits into a real tax credit.”

Commenting on the announcement, Frank Buffone, Head of R&D Tax Relief at EY, said: “This has been a real bugbear for industry and has impaired the effectiveness of the relief to date.  Moving this to an “above the line” credit will mean that this will become far more effective at driving innovation.  Now we wait to see the detail and, of course, the generosity of the credit.  We now have a date, April 2013...  now we need to know the amount.”

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