CBI call for improved R&D tax incentives
The CBI recent report “pulling together” urges the Government to supercharge the UK’s R&D tax credit regime. Recent research indicates that the UK is underinvesting in R&D.
The report recommends ways to kick start the UK’s supply chains and solutions to reinvigorate industrial strategy.
Among the recommended measures is an increase in spending on R&D with an aim of reaching a combined public and private R&D spend of 3% of the UK’s (GDP).
The report states that, although the existing R&D system has been improved and its impact is increasing, it does not carry through to support later stages of commercialisation and manufacturing of innovative products. The CBI, therefore, encourages the Government to develop a ‘supercharged’ R&D tax credit to incentivise the commercialisation of UK-generated ideas.
The report suggests that the Government should improve access to ‘patient capital’ for medium-sized companies and encourage collaborative investment in R&D through the tax system.
Another solution set out in the report is for tax rules to encourage long-term investment in both small and medium-sized enterprises; for example to revise the SME R&D partnership enterprise rules around non-controlling corporate interests to remove disincentives for corporate investors.
The CBI report is available at http://tinyurl.com/kc7q212.
Date: 10th November, 2014
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