Partner Article

UK will loose its global edge if scheme is scaled down

ONE of the UK’s business and financial advisory firms has said the UK will lose its attractiveness as a place to do business if Research & Development (R&D) benefits are scaled down.

In a new report conducted by Grant Thornton, Technology experts at the firm are calling for the continuation of both SME and large company R&D tax relief schemes.

They also recommend that R&D tax relief is not restricted by sector or by type of technology.

Neil Sengupta, partner in Business Tax Services at Grant Thornton’s North East office, said: “The UK cannot afford to lose the benefits of what it has already invested in R&D.

“The current system has been in place for ten years and we are seeing clear benefits as the knowledge and take-up of the relief continues to expand.

“Because traditional UK sectors such as manufacturing and financial services are either static or in decline, it looks likely that our country’s future income growth will come from the expansion of the ‘knowledge economy’ and businesses linked to intellectual property.

“The UK’s level of investment in research and development will be key to our success in this area.”

The report also recommends that more should be done to help early stage SMEs and start-ups.

This was posted in Bdaily's Members' News section by Ruth Mitchell .