Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of broadening the definition of research and development activities that qualify for tax relief to include research and development undertaken by creative industries.

Qualifying R&D is defined as a project seeking to achieve an advance in science or technology through the resolution of uncertainty, which allows claims from creative sectors.

In the 2021 consultation on R&D tax reliefs, there was a strong consensus amongst respondents that the definition of “R&D” itself does not require amending given it is well understood, embedded and consistent with the OECD Frascati standard, including the core criteria within it. The government currently has no intention to change the definition, since this would add further complexity and uncertainty at a time when the government is prioritising stability and simplification.