Recommendation 32

The cost to taxpayers of implementing new tax rules is an important consideration when developing new policies. While not confirming whether the merged scheme would go ahead, the Government has been clear since January 2023 that, if it did, it would take effect from April 2024. Changing the way in which R&D relief is given is a major change and we see no reason why indicative cost estimates could not have been provided in July 2023. By only publishing its costings in late November 2023, the Government left it too late for stakeholders to engage on whether its estimates accurately capture those costs.