Post by Sapphire Capital on Aug 7, 2008 1:40:10 GMT 4
UK boosts R&D tax credits for SMEs
source: Joanna Faith
The UK government is encouraging small and medium sized businesses to invest more in developing new and improved products by boosting research and development (R&D) tax relief.
R&D tax credits will increase by £80 million ($157 million) a year from August 1 2008, bringing the total tax relief available to around £300 million ($591 million) a year.
The size of the company that can qualify for tax relief will also increase from 250 employees to 500 employees.
There is no indication that the government will apply a similar tax relief to large businesses. A Treasury spokesperson said: "Tax policy is a matter for the Chancellor during the budget process."
R&D tax credits were introduced in 2000 for small and medium sized enterprises and extended in 2002 to large companies. The government hopes to raise R&D spending to 2.5% of GDP by 2014.
source: Joanna Faith
The UK government is encouraging small and medium sized businesses to invest more in developing new and improved products by boosting research and development (R&D) tax relief.
R&D tax credits will increase by £80 million ($157 million) a year from August 1 2008, bringing the total tax relief available to around £300 million ($591 million) a year.
The size of the company that can qualify for tax relief will also increase from 250 employees to 500 employees.
There is no indication that the government will apply a similar tax relief to large businesses. A Treasury spokesperson said: "Tax policy is a matter for the Chancellor during the budget process."
R&D tax credits were introduced in 2000 for small and medium sized enterprises and extended in 2002 to large companies. The government hopes to raise R&D spending to 2.5% of GDP by 2014.