Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what plans he has to bring forward legislative proposals to introduce tax credits for Research and Development.

The Government offers two separate Research and Development (R&D) tax reliefs, the Research and Development Expenditure Credit (RDEC) and an additional Corporation Tax deduction for Small and Medium-sized enterprises. Both are available to loss-makers as well as profit-makers.

The estimated total number of R&D tax credit claims for the year ending March 2020 was 85,900, with total support claimed £7.4 billion. This corresponds to £47.5 billion of R&D expenditure.

The Government is currently undertaking a review of the reliefs. The objectives of the review are to ensure the UK remains a competitive location for cutting edge research, that the reliefs continue to be fit for purpose, and that taxpayer money is effectively targeted.