In this week’s autumn statement, the government has a chance to provide much-needed clarity around R&D relief. Find out what changes have been made to R&D Tax incentives, and how they could impact your business.
Single Scheme R&D regime
The single scheme R&D regime is bad news for tech clients, particularly loss making companies, as it means a further reduction in R&D tax reliefs, but it is good news for R&D intensive SME businesses. Many of which are in the tech sector will not see a reduction in R&D tax reliefs.
Reduction in R&D Definition
A reduction in the definition of R&D intensive from 40% to 30% will also allow more tech sector businesses to benefit from higher R&D tax reliefs.
Extension to future fund
Extension to Future Fund – at least £50m to help UK’s most intensive R & D companies to scale up.
AI Growth
£500m for UK computing super centres to grow AI capability – we will need to see the detail behind this but potentially good news for tech sector with ever increasing work on AI.
Space Sector
Autumn Statement provides £121 million for the UK’s space sector.
£2.5 billion ten-year National Quantum Strategy
The government is also building on the £2.5 billion ten-year National Quantum Strategy by publishing an ambitious set of quantum missions, 50 including a mission to have accessible, UK-based quantum computers capable of running 1 trillion operations by 2035. Other missions focus on quantum networks, medical applications, navigation, and sensors for infrastructure.
Innovation Investment
The government also remains committed to ensuring early-stage, innovative companies have access to the investment they need to grow and develop. To continue supporting thousands of start-ups and small and medium-sized enterprises (SME) each year who face the biggest challenges in accessing growth capital, the government will legislate to extend the Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCT) to 2035.
Innovate UK
The government will invest £145 million through Innovate UK to support business innovation. This includes £20 million for productivity and decarbonisation of foundation industries, £50 million for battery innovation, £50 million for investment in Catapults, and £25 million for innovation in critical technologies.
Explore our Autumn Statement Hub
If you have any queries regarding the above, please do get in contact with us below: