Whilst there were some welcome improvements, overall it was not the bold Budget – with a focus on unlocking investment – that business had hoped for. We saw welcome reform on R&D tax credits and also significant announcements on business rates, with the final report on the Business Rates Review published today, including considerations on a potential Online Sales Tax. For further details, see our article.
However, delving into the detail of the “Red Book” and the Overview of Tax Legislation and Rates “OOTLAR” published alongside the Budget, there are a number of announcements that should not be overlooked by business.
R&D tax credit
The government has announced the expansion of the R&D Tax credit regimes to include data and cloud computing costs as eligible expenditure, and to exclude overseas R&D activities from the scope of the reliefs.
The CBI welcomes the expansion of eligible expenditure for R&D Tax credits purposes to include data and