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Specialist R&D tax adviser ForrestBrown has shared its wish list for the next government to optimise research and development tax relief and propel the UK’s innovation ambitions.
The manifestos of major parties have so far made commitments on R&D – the Labour Party plans to scrap short funding cycles for key R&D institutions in favour of ten-year budgets, and the Conservative Party promises to increase public spending on R&D to £22bn a year and maintain R&D tax reliefs.
In light of this, ForrestBrown has shared how the new government can further amplify the UK’s status as an R&D leader by targeting key improvements to tax incentives.
Recent revisions to the UK government’s merged R&D tax relief scheme aimed to streamline initiatives and simplify applications for innovative businesses.
However, as the election approaches, ForrestBrown highlights further fine-tuning needed to bolster innovation.
The firm’s wish list for the new government includes advocating for a clear target for R&D expenditure as a percentage of GDP to drive national innovation efforts.
It also includes securing the right quantity and quality of resources for HMRC to undertake effective compliance efforts to safeguard the integrity of R&D tax relief.
Among other things the firm is calling for improved data transparency, research updates on additionality, a DSIT-led review of R&D definition, SME relief evaluation and consultation on RDAs.
Sara Brigden, managing director at ForrestBrown, said: “With major political parties doubling down on R&D in their manifestos, the steps we have outlined would enable whoever wins the election to put these commitments into action.By increasing transparency, improving standards and setting clear targets, the new government has the opportunity to supercharge business innovation.
“Support for private sector R&D should be front and centre of the government’s policy agenda. We’re hopeful that, regardless of the new government’s form, this will remain a priority.”
