The latest R&D tax relief consultation must not be another missed opportunity

When the chancellor delivers his Spring Budget next month (15 March) the closing date for consultation on a future single scheme for research and development (R&D) tax relief just two days earlier is likely to pass relatively unnoticed. But while the headlines will no doubt be dominated by Jeremy Hunt’s efforts to boost the economy this latest consultation on R&D tax relief could have long-lasting significance for future growth.

The scope of consultation is narrow – focusing on the design and implementation of a proposed single scheme for R&D tax relief – but its implications could be wide-reaching. This would be for small to medium sized enterprises (SMEs) in particular which are set to lose out if the recent rate ‘rebalancing’ in favour of larger companies is baked in through a single rate for all in future.

Behind the slimline consultation document (tinyurl.com/hmtrdcondocjan) which runs...