Government Plans to Boost Small Business R&D

A new research and development plan has been launched by the government to boost small businesses investing in R&D.

The plan, which was announced by financial secretary to the Treasury, David Gauke, aims to increase the uptake of research and development (R&D) tax relief by raising awareness of the relief and making it easier for small businesses to apply. By helping companies to reduce the amount of corporation tax they pay on profit, the government hopes the relief will encourage businesses to invest in costly new product development.

David Gauke, financial secretary to the Treasury, said:

"R&D is crucial for the long-term growth of the UK economy. Over 15,000 SMEs claimed the relief in 2013, an increase of around 19 per cent from the previous year, but we need to go further to support pioneering small businesses.

"That's why we've published a document setting out our plans to increase awareness and make it easier for people to apply."

From November, in accordance with the two-year plan, SMEs with a turnover of under £2 million and fewer than 50 employees will be eligible to seek advance assurance on research and development tax relief.

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