In the Autumn Statement, the government set-out its continuing commitment to “Unleashing Innovation” in the UK with regards to Research and Development (R&D).
Cloud and Data services
Whilst the rates of the R&D Tax Reliefs remain unchanged, businesses will be able to claim for expenditure incurred on Cloud and Data services incurred for their R&D. Long awaited good news for technology companies, software developers and start-ups alike and following recent consultations into the effectiveness of the UK R&D regime.
Refocusing overseas innovation
More broadly, changes will also be made to refocus the reliefs towards innovation in the UK, rather from overseas, whilst generally improving compliance surrounding the scheme. Further details will be announced in the autumn, with the changes to be legislated for in the Finance Bill 2022-23 and to take effect from April 2023.
Additional plans
Additional plans were announced to increase funding for innovation by increasing support for Innovate UK grants (up to £1 billion per year), pledging further financial support for green and health-related technologies, and announcing the Advanced Research and Invention Agency (ARIA) that will “carry out high-risk, high-reward research to support ground-breaking discoveries across the UK.”
According to the Autumn Statement announcement, “Every pound the government spends on R&D stimulates, on average, around £2 of private investment”, and overall these measures will see an increase in spending on innovation in the UK to £22 billion a year by 2026/27. All helping to make the UK a scientific and technological “superpower”.
If you have any queries or concerns raised by the 2021 Autumn Budget, and wish to discuss with one of our team, please do not hesitate to get in touch.
