Research: Tax Allowances
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of R&D tax reliefs on (a) business investment and (b) economic growth.
Answered by James Murray
The Government recognises the important role that research and development (R&D) plays in driving innovation and economic growth as well as the benefits it can bring for society.
Overall, R&D reliefs will support an estimated £56 billion of business R&D expenditure in 2029-30, a nearly 20 per cent increase from £47 billion in 2022-23.
The latest evaluations (“Evaluation of the research and development tax relief for small and medium-sized enterprises” and “Evaluation of the research and development expenditure credit”) were published in 2020 by HMRC and can be found on the gov.uk website. In the Corporate Tax Roadmap published at Autumn Budget, the government committed to periodically evaluating the R&D reliefs to ensure they are as effective as possible and underpinned by a credible, up to date evidence base.
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