‘Reform R&D tax credits to attract labs and jobs to UK’

Trade bodies urge government to allow capital expenditure to qualify for tax relief

A coalition of top industry leaders has urged the government to allow capital expenditure to qualify for R&D tax credits in order to kickstart the economic recovery from coronavirus and level up the country.

First introduced in the UK in 2000, the R&D tax credit scheme is a form of tax relief designed to encourage greater spending by businesses on R&D. It works by reducing a company’s liability to corporation tax, or through making a direct payment to the company.