Budget 2013: Deloitte comments on 10% R&D boost for British companies
21 March 2013
Carmen Aquerreta, head of R&D and Patent Box at Deloitte, comments on the 10% rate for R&D relief and its impact on jobs and growth in the UK:
“The new R&D expenditure credit scheme for large companies will provide support to a wide range of industries and is predicted to provide additional relief of £1.1bn to innovative companies over the next five years. This, together with the patent box relief that comes into effect from April this year, as well as other measures such as the £2.1bn relief for the aerospace industry announced this week, provides a strong package of support for innovation in the UK and a boost to global competitiveness.
“Particular beneficiaries will be large companies who do not have a tax liability, as these companies will be entitled to cash credits for the first time, enabling them to get an immediate benefit from the regime; as well as SMEs that carry out R&D subcontracted from others. This relief will therefore affect a broad spectrum of the UK economy.
“The impact of the change will be the establishment of a closer connection between the relief and the R&D and technology teams. We expect that the design of the new R&D expenditure credit will be largely consistent with that set out in the recent consultation, with the exception of the PAYE/NIC cap where some detailed revisions are expected to be set out in the Finance Bill next week.”
Notes to editors
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities.
Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
The information contained in this press release is correct at the time of going to press.
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