Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions his Department has had with insurance companies on recent trends in the level of the availability of insurance premiums that insure against (a) Research and Development Expenditure Credit and (b) Research and Development tax relief for small and medium-sized enterprises claims being disallowed.

Treasury Ministers and officials have meetings with a wide variety of organisations in the public and private sectors on an ongoing basis.

Insurers make commercial decisions about the terms of cover they offer, including for tax liabilities, based on their assessment on the likelihood of a claim being made. The Government does not intervene in these commercial decisions by insurers as this could damage competition in the market.

The Government is committed to making Research & Development (R&D) claims as straightforward as possible. His Majesty’s Revenue & Customs (HMRC), are responsible for delivering the checks and compliance activity for R&D claims, in line with their professional standards for compliance.