Autumn 2017 Budget – Giving incentive to innovate
During today’s budget the Chancellor announced:
- An allocation of £2.3 billion pounds for further investment in R&D.
- R&D tax credit will be increased to 12%. Making a step forward in our strategy to drive up R&D investment across our economy to 2.4% of GDP.
- Allocating a £400 million into a new charging infrastructure fund and an extra £100 million in a Plug-In-Car Grant, plus an additional £40 million in giving R&D the charge to assist in the development of electric and driverless vehicles in the UK.
- £4 million funding boost for the videogame industry over the next 4 years, giving more opportunities to turn ideas into a reality.
A statement was given saying that ‘by continuing to invest in Britain’s infrastructure, skills and R&D we will ensure the recovery in productivity growth that is the key to delivering our vision of a stronger, fairer, more balanced economy, and the assurance of economic security to the next generation.’
More businesses are becoming aware of R&D and it got to the point that the numbers of claims for relief are higher than ever. Because of this, it can be seen that the Chancellor considers the RDEC regime as a key to give continuous support to businesses that perform high risk activities and bring benefits to entire sectors.
It’s also great news that an increase in RDEC benefit is happening, this means that the effective benefit of this regime is just 10% short of expenditure. This relief is quite generous, and no doubt gives incentive to invest into innovation, which is a key element to the economy.
If you, like many companies, are wondering how everything above impacts your investments, it’s a great idea to contact our team today.
We have a team of specialists here at M3 partners willing to help you find you whether your business fits the criteria and whether any R&D tax credits claims can be done for projects conducted.