NCUB has submitted input into the Finance Bill 2022-23. The Finance Bill 2022-23 includes proposals for Research & Development Tax Relief reform. The three major changes proposed include extending qualifying expenditure, refocusing the reliefs toward innovation in the UK, and tackling abuse and improving compliance.

NCUB’s submission welcomes the proposed extension of qualifying expenditure, understands the purpose of refocusing reliefs towards innovation in the UK though notes the potential need for further guidance as well as ongoing review to ensure that the competitivity of the UK offer is not diminished. We also acknowledge the intention behind measures to tackle abuse and improve compliance. Finally, we suggest further reform may be beneficial to improve both the effectiveness of R&D tax reliefs. This includes additional relief focused on priority areas and inclusion of capital expenditure.