What Does the New Labour Majority Mean for R&D Tax?

As Labour has secured a victory in the UK General Elections, many clients and prospective clients ask what the impact of a Labour government on the UK R&D tax and the wider UK corporation tax system may be.

Here is Labour's official stance on these two topics.

R&D Tax: "Labour is proud to have introduced R&D Tax Credits (...). However, there has been far too much chopping and changing in recent years, with five changes announced this parliament alone. To provide stability, Labour will maintain the current structure of R&D tax credits over the next parliament."

Corporation tax: "All businesses need to know that when they choose to invest in the UK, their plans will not be undermined by an unstable business tax environment, but there have been 26 changes to the Corporation Tax regime this parliament alone. That is why a Labour government would commit to cap the headline rate of Corporation Tax at the current rate of 25 per cent for the lifetime of the next parliament."

Source: https://labour.org.uk/

Many companies may not be aware that they qualify for R&D tax credits, and any potential for innovation is worth exploring.

If you, or anyone you know, want to discuss our R&D tax and/or R&D grants services in more detail, please contact us via info@minervainnovation.co.uk or 0141 378 4969!