Recommendation 1

W hile it is right for the Government to keep the R&D relief scheme under review to ensure that it meets the needs of a modern economy and provides value for money for the taxpayer, too much change over too short a period can create uncertainty. We are concerned that the number of significant R&D changes made in the last 5 years has led to a perception of instability in the UK’s R&D tax relief regime and undermined the intended incentive effect of the relief.