- Chancellor Jeremy Hunt announced welcome tax breaks for business investment in Wednesday’s Budget.
- The latest change was an “enhanced” tax credit for small, loss-making businesses that spend more than 40% of their costs on R&D.
- Last autumn’s changes had a dulling effect on willingness to invest or undertake riskier projects.
- The R&D tax credit scheme is being reshaped to pick winners by the back door.
- The incentive and support for most small companies to innovate is still being drastically reduced.
Financial Times — Companies — R&D Policy — Helen Thomas — Tax — Uk Budget
Endless innovating when it comes to R&D policy can only be unhelpful
The new enhanced R&D tax credit scheme is reshaping to pick winners by the back door, reducing the incentive and support for most small companies to innovate.