Consultation opens on R&D tax credits

The UK Government has opened a consultation on tax credits for Research and Development (R&D) tax credits, used to encourage R&D work within Britain.

This consultation focusses on how to include data and cloud computing, newer aspects of R&D that can be major features of such work:

“The subject of this consultation is the scope of qualifying expenditures for R&D tax credits, and especially whether expenditures on data and cloud computing ought to qualify for relief. Please note that the government is not inviting views on the internationally agreed definition of R&D itself as this would generate undue uncertainty.”

This consultation was first indicated in the Spring Budget 2020, and the Treasury has indicated any support for data and cloud computing may come at a cost for other areas of R&D:

“Expanding the scope of qualifying costs would have an exchequer impact, therefore the government would also be interested to hear about current eligible costs that could be considered routine work and should not be receiving relief.”

Take part in the consultation through the UK Government web pages.

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Published on 22. July 2020 in News, News UK