R&D relief for large companies
Large companies saw their hopes of receiving research & development tax cuts in the 2001 fiscal year dashed today as chancellor Gordon Brown paid only lip service to the idea without making any real commitment.
In his budget speech, Brown said: ‘Today we issue proposals and will consult on the best way to extend a research and development tax credit to larger companies.’
‘I see this as an essential tax relief to aid growth of business in the UK,’ said Alastair Kendrick, tax director at Ernst & Young. ‘The Chancellor has clearly, in tabling this, listened and responded to the demands of business who have been betting hard for relief in this area,’ he added
Kendrick told Accountancy Age: ‘This is promising something for tomorrow (after a general election), my concern is whether it will ever materialise.’
After the Budget speech, the government issued a consultation document, ‘Increasing Innovation’ to examine the case for further measures to boost UK innovation and seek views from larger companies on the research and development tax cut.