Proposals for tax credit revealed
The Government has unveiled proposals for a research and development tax credit for large companies.
Announcing his Designs for Innovation proposals, the chancellor Gordon Brown yesterday provided details on three options for taking the credit forward.
The chancellor, said: ‘An R&D tax credit for large companies will play an important role in boosting business R&D expenditure. R&D tax credits provide businesses with an incentive to increase R&D spending, while leaving the decisions on individual projects in their own hands.’Options include a simple volume scheme in which the R&D tax credit is given at a single rate on all qualifying R&D expenditure, a two-tiered volume scheme and a baseline volume scheme.