How R&D tax relief has become central to supporting private sector innovation

The year 2000 saw the introduction of research and development (R&D) tax credits in the UK. Much like another new structure that appeared at the time the Millennium Dome R&D tax incentives have undergone several facelifts and rebrands since. As with what is now the O2 the original foundations remain while elements of the structure have been updated to stay relevant in today’s world.

R&D tax relief was first introduced under a Labour government by the then chancellor Gordon Brown. In the subsequent 25 years successive governments have maintained a commitment to encourage private sector investment in innovation with the incentive becoming a flagship taxation policy.

For much of this time R&D tax policy was a model of stability but in recent years change has been the only constant with a succession of consultations and legislative changes sowing seeds of uncertainty....