Commenting on announcements on R&D, David Woodward, Partner, Innovation Reliefs & Incentives, KPMG UK, said:
"Business will welcome the Chancellor's announcement in the Spring Budget to reduce the administrative burden on claiming R&D credits and tax incentives. Simplicity and certainty are key to business. However, whilst the Chancellor believes the UK regime is globally competitive, we need to make sure the UK is not complacent. The Chancellor could have used this opportunity to increase the value of the R&D Expenditure Credits regime. We suggested a rate increase from 11% to 12.5%, to give a net (of tax) benefit of 10%. In a competitive global market, this would have provided strong positioning for the U.K.
“Our other hope is for a more joined up approach between incentives for investing in R&D, both tax incentives and grants, with incentives for exploiting the output of R&D. Incentives that encourage investment in UK production facilities exploring the R&D will ensure businesses lay foundations in the U.K. for the long term."
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