Autumn Budget 2017: A mixed bag but extra funds for R&D are positive
Comments provided by Menzies Tax Partner Richard Godmon
Despite a 25 percent reduction in growth estimates from the Spring Budget, The Chancellor has announced further investments and enhanced incentives to boost research and development activity in a bid to strengthen the UK economy and position it for sustainable growth.
As well as announcing an additional £2.3 billion investment in research and development programmes, the Chancellor announced a one percent increase in the rate of the R&D tax credit to 12 percent (with immediate effect) and increased the National Productivity Investment Fund to over £31 billion.
It’s great news that the Chancellor is going to increase the R&D tax credit to 12% – a 1% increase. This is already seen as a generous scheme incentivising investment in innovation, which is the cornerstone of the economy. It is particularly positive that he has chosen to make this change at a time when the volume, and therefore the cost of R&D claims is rising. It is unfortunate there is no corresponding increase for SME innovators. However, there has never been a better time for innovative businesses to push forward with R&D tax credits and tax relief on investment through EIS.
More detail on the Chancellor's 2017 Budget
Autumn Budget 2017: Business Sector Repsonse
Here follows a summary of the headline response for the Chancellor’s 2017 Autumn Budget from each of Menzies’ business sector teams.
Hospitality & leisure sector
Property and Construction Sector
Retail & wholesale sector
Transport & logistics sector
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