Budget 2024 update – R&D tax: NO NEWS IS GOOD NEWS!

As promised by the government previously, no further changes were announced to R&D tax rates in yesterday’s budget.

This is clearly a welcome confirmation, which, as stated, “provides companies with the certainty they need to make investment decisions as there has been significant change to the system in recent years, and it is now time to prioritise stability.”

Therefore, the government is committed to maintaining the generosity of the rates in both the merged R&D Expenditure Credit (RDEC) scheme and the Enhanced Support for R&D Intensive SMEs which apply to accounting periods beginning on or after 1 April 2024.

Considering all the recent changes, the government has committed to consider longer-term simplifications and incremental improvements to the effectiveness of the reliefs.

Please contact us if you have any questions. Our team would be pleased to discuss your situation and provide tailored advice.