The government recently launched a consultation seeking views on the introduction of a single R&D tax relief scheme designed to simplify the system and help grow the economy. 

This consultation sets out details of a proposed new scheme that would merge the existing Research and Development Expenditure Credit (RDEC) and small and medium enterprises (SME) R&D relief schemes. The eight-week consultation period is due to run until 13 March 2023. 

The government said it recognises the important role tax reliefs play in encouraging businesses to invest in R&D, helping them to grow and create the technologies, products and services which reshape lives and livelihoods. It hopes the new scheme will provide smaller company decision makers with clearer information about how much relief they will receive and thereby help them set budgets for R&D. 

Commenting on the consultation, Financial Secretary to the Treasury Victoria Atkins MP said, “Getting R&D tax relief right and fit for the future sits at the heart of making sure the UK remains a competitive location for cutting edge research – helping new firms grow. I welcome views on the option to simplify the scheme, especially from those who have experience of the existing tax reliefs.”