10 April 2019
Businesses are invited to give their views on the proposed cap on R&D tax credits
The government is consulting on changes to research and development (R&D) tax reliefs, first announced at Budget 2018, which are intended to prevent abuse of the small or medium-sized enterprise (SME) scheme.
The changes involve introducing a cap on the amount of payable tax credit that a qualifying loss-making business can receive through the relief in any one accounting period.
The cap will be three times the company's total PAYE and NICs liability for that year and will be implemented from April 2020.
The consultation is seeking views on how the cap will be applied, so as to minimise any impact on genuine businesses, before it is legislated in Finance Bill 2019-20.
How to respond
You can email your response to firstname.lastname@example.org or write to:
Business, Assets and International
CT Innovation & Growth team
HM Revenue and Customs
100 Parliament Street