R&D Tax Specialist ForrestBrown has reviewed the Chancellor’s Autumn statement and highlights the changes announced as part of the ongoing review of R&D tax reliefs.
The government is reforming the reliefs to ensure taxpayers’ money is spent as effectively as possible, and the Chancellor made several changes to the rates of R&D relief, expected to take effect for expenditure incurred on or after 1 April 2023.
The changes are as follows:
SME
This reduces the overall generosity of SME R&D tax relief and these rate changes will come about at the same time as Corporation Tax rises from 19% to 25%.
RDEC
As well as the above rate changes, the Statement announced that HMRC will receive further resources to bolster its efforts in reducing error and fraud.
For more information on the rate changes visit forrestbrown.co.uk/news/autumn-statement-2022-what-it-means-for-rd-tax-relief/
ForrestBrown has been taking a leading role in policy discussions on reform and has called for improved professional standards to combat abuse of R&D tax reliefs. Earlier this week, director and head of policy Jenny Tragner provided evidence to the House of Lord’s inquiry into the draft 2023 Finance Bill (Jenny’s appearance can be seen at 16:46) and made representations on behalf of ForrestBrown’s clients. Recommendations are expected to be made before these rate changes.
