R&D tax credits need to be open to 'all firms'

Home > > R&D tax credits need to be open to 'all firms'

R&D tax credits need to be open to 'all firms'

11 March 2010

The CBI has urged that research and development tax credits should be available to firms of all sizes.

The statement from the employers' group was made in response to a report - Ingenious Britain - produced by entrepreneur, Sir James Dyson.

The tax credits are made either as a tax deduction based on R&D spending or, for certain loss-making SMEs, as a return for a cash payment from HMRC when the firms surrender their losses.

In his report, Sir James argued the case for restricting R&D tax credits to small and hi-tech businesses.

The report also recommended boosting the Enterprise Investment Scheme (EIS) so that it focuses on relief for investors who support technology firms.

However, the CBI said it believed that the tax credits should apply to all businesses irrespective of their products or sector.

Dr Tim Bradshaw, the CBI's head of enterprise and innovation, said: "Science and engineering need greater backing if the UK is to create more skilled jobs and attract global investment. The report makes some positive suggestions, such as improving science teaching in schools.

"However, R&D tax credits should not be restricted to SMEs and high-tech firms, but should be available to companies of all sizes and sectors. This would encourage all businesses to grow through investment and innovation.

"Similarly, the Enterprise Investment Scheme (EIS) should concentrate on businesses with high-growth potential, rather than Dyson's proposal that it focus on high-tech firms alone."
News - Business Tax
- 29 July 2010
  Self-employment declarations should be respected
- 28 July 2010
  Government publishes a raft of tax consultations
- 27 July 2010
  Companies urged to publish up-to-date financial information
- 23 July 2010
  VAT increase could be ‘detrimental’
- 22 July 2010
  Tax measures will hit consumer budgets

Our Latest News

Increase in risk of a second recession, says think-tank

The chances of the UK economy entering a second recession next year have risen, according to the National Institute for Economic and Social Research (NIESR).

UK skills training needs radical overhaul

The British economy could find itself facing a period of decline if the skill levels of the workforce do not show marked improvement, it has been claimed.

Compulsory retirement age to be retired

The government is proposing to scrap the default retirement age of 65 by October 2011.

Savers not being told about interest rate changes

Many banks and building societies are failing to keep savers properly informed about changes to the interest rates on their accounts, comsumer group Which? has claimed.

Self-employment declarations should be respected

With thousands of people predicted to start up their own micro-businesses as unemployment rises, a business group has called on the tax authorities to respect their employment status.

Government publishes a raft of tax consultations

The Treasury has issued nine consultation papers on various aspects of the personal and business tax system in what amounts to a far-reaching overhaul of the entire regime.

Prospect of rise in energy costs for business

Businesses have been warned that they could see a steep rise in energy costs over the coming years.

Banks under pressure to increase small business lending

Banks could face possible tax sanctions if they fail to boost lending to smaller businesses.

R&D tax credits need to be open to 'all firms'

News - Business Tax

Our Latest News