§ 11. Mr. Derek TwiggTo ask the Chancellor of the Exchequer if he will make a statement on the introduction of the new tax credit for companies investing in research and development. [121381]
§ Mr. TimmsThe new R&D tax credit was introduced in April. It will benefit 4,500 companies and support almost £1 billion of R&D per year. The enhanced relief will reduce those companies' costs for carrying out R&D by between 24 and 30 per cent., reflecting the importance the Government attach to helping small businesses succeed by reaping the benefits of our new enterprise economy.
§ 15. Mr. Ben ChapmanTo ask the Chancellor of the Exchequer what representations he has received on his measures to help companies with research and development. [121386]
§ Mr. TimmsOur new research and development tax credit, introduced on 1 April, has been warmly welcomed since its announcement a year ago. We received representations emphasising the importance of incentives for R&D in small and medium firms, and so that is where the credit is being targeted. We have also decided, responding to representations, that the credit should be available as well to companies not yet trading. The changes we have made in response to representations have increased by 1,000 the number of firms expected to benefit from the tax credit.