Proposed R&D Tax Credits Upped

Minister Megan Woods has announced that, after substantial feedback from industry, the proposed R&D tax credit scheme has been restructured and increased. These tax credits replace the existing growth grants that were administered by Callaghan Innovation. Importantly, the government has addressed the major issue of start-ups, which often make a loss in the first year or so and can’t offset the tax against their profits, while also losing growth grants at the same time. Until the start of the 2020-2021 tax year, the government will offer refundable tax credits, allowing qualifying companies to receive a cash payment instead of carrying their losses forward against future taxes. More details are available here: