The measure

The Chancellor announced that the government will make administrative changes to improve certainty around how the rules of Research and development (R&D) tax relief apply to claims by large businesses and to improve awareness of R&D tax credits among SMEs.

Who will be affected and when?

The details of the administrative changes have not been announced.

Following the review of the R&D tax regime announced in the Autumn Statement, which found that the UK's R&D tax credits regime is both effective and internationally competitive, the government will continue to keep the competitiveness of the UK R&D tax credits system under review.

Our view

The announcement that the administrative burden for R&D tax relief will be reduced is welcome, as is the continued support for UK innovation.

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