No change in R&D guidelines, says government

The Treasury has hit back at suggestions that research and development (R&D) tax relief – a rebate against investment in innovative technology – is becoming harder to access.


The Treasury has hit back at suggestions that research and development (R&D) tax relief – a rebate against investment in innovative technology – is becoming harder to access.

The Treasury has hit back at suggestions that research and development (R&D) tax relief – a rebate against investment in innovative technology – is becoming harder to access.

This statement is in response to claims made by accountancy  firm Grant Thornton that HMRC may change its interpretation of the rules which provide for ‘tax super-deductions’ on costs incurred for R&D activity.

A spokesperson from HMRC says: ‘[Our] role is to help companies obtain the relief that they are entitled to, while policing the rules and boundaries of the R&D schemes fairly. HMRC does not operate any limit on the amount paid out.

‘The R&D tax credit schemes form part of wider government action to encourage UK companies to undertake more R&D. So, the only target we are working towards is to provide support to companies that are undertaking qualifying R&D activity.’ 
 

Samantha Vanags, technology and R&D tax partner at Grant Thornton, said recently that in the course of making claims for their clients, the firm was experiencing a much higher volume of tougher challenges from HMRC. ‘Clamping down in this area goes directly against the original purpose of the relief which was to stimulate R&D activity in the UK,’ she added. 

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