To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential effect on research and development tax relief of territoriality restrictions having been in place for each of the last five years, by sector.
Answered on
12 January 2022
At Autumn Budget 2021, the Government announced reforms to Research & Development (R&D) tax reliefs to support modern research methods. The Government did this by expanding qualifying expenditure to include data and cloud costs, to more effectively capture the benefits of R&D funded by the reliefs by refocusing support towards innovation in the UK and to target abuse and improve compliance. The review will continue to identify areas for further change. A report was published at Tax Administration and Maintenance Day. The report provided more detail on the reforms announced at Autumn Budget 2021 and set out areas where the Government is seeking views to inform the draft legislation that will be published next year.