Draft Finance Bill 2012: Research & Development – Government listens to the new way of working
Chris Sanger, Head of Tax Policy at Ernst & Young commented: “In the draft Finance Bill issued today, the Treasury showed that it is beginning to truly understand the way that R&D is undertaken in this country. The proposals enable much more of the R&D undertaken through external specialists to qualify for the high profile R&D tax incentive. This has long been a thorn in the side of UK companies, seeking to undertake R&D in the most effective manner.”
Frank Buffone, Head of R&D Tax at Ernst & Young, said: “This will be a great fillip for the industry and will provide a much needed impetus at this delicate time for the economy. It should also significantly simplify the administration, which can act as a deterrent to claiming and thereby frustrate the positive impact of the incentive.
“Today’s confirmation of the increased tax relief rate, as well as the removal of the £10,000 minimum and the link to UK employees, will be especially useful for Small and Medium sized companies.”