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R&D tax credit to survive Tory election win

George Osborne

The Tories have ditched plans to scrap tax incentives for research and
development if they win the general election expected on 6 May.

Party leader David Cameron welcomed a report proposing the u-turn from
opposition industry ‘Czar’ Sir James Dyson on how to rebalance the UK economy
away from over-dependence on the City.

Cameron said the Dyson Report “represents an exciting and ambitious step
forward in our desire to make Britain Europe’s leading generator of new
Shadow chancellor George Osborne has previously proposed scrapping most of the
corporation tax breaks in order to fund a reduction in the headline rate of tax
on business.

But a
spokesman said a Tory government “will keep R & D tax credits” refocused
along lines proposed by Dyson, who urged that when public finances allow the
rate of the relief should be increased to 200%.

The beneficiaries would be “high tech companies, small businesses and new
start-ups “in order to stimulate a new wave of technology”.

Dyson also proposed increasing the generosity of the Enterprise Investment
Scheme providing relief for “angel” investors.

Further reading:

the Tories’ statement on Sir James’ report

take an R&D R&R

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