Government response to the Research and Development tax relief, HMRC data requirements, promoters of tax avoidance and sentencing for tax fraud report

This is the government's response, published 3 May 2024.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government "notes" the Sub-Committee's conclusions and recommendations, and reports that it has "accepted 21 recommendations and partially accepted a further 10 recommendations".

• On R&D relief, it partially accepts the call for no further changes over the medium term: it "cannot guarantee that no further changes will be needed", and HMRC will publish a compliance action plan "in due course".
• It does not accept delaying the new merged scheme to 2025. It says it consulted "over a considerable period" and instead applied the scheme to accounting periods starting on or after 1 April 2024.
• On HMRC data, it accepts the call for early publication of draft regulations and says detailed guidance will be published "in good time to prepare for implementation in April 2025". It partially accepts the recommendation on revising employee-hours costings.
• On tax avoidance promoters, it partially accepts the call for independent oversight of stop notices, citing the tax tribunal appeal right as a safeguard. It does not accept amending the legislation on criminal proceedings during an appeal, or narrowing director disqualification.

Read the government's response ↗ Report an error