R and D reform

Industry calls for reform of R&D tax credits Trade bodies representing businesses focused on research and development have called for a reform of tax credits, saying this would boost the economy and attract investment into the UK. A report commissioned by industry bodies including the Confederation of British Industry warns that “outdated” rules do not allow companies to claim R&D tax breaks on capital spending, unlike in other countries including France, Spain and Japan. This, the report argues, means there are “far stronger incentives to physically locate new research facilities in other countries.” The trade bodies say altering the R&D tax credit regime so as to include capital spending could incentivise companies to invest in Britain, adding £4bn a year to the economy within a decade and creating at least 12,000 jobs.