§ Matthew TaylorTo ask the Chancellor of the Exchequer what his policy is on levels of R and D tax credits in Objective 1 areas; and if he will make a statement. [6441]
§ Dawn PrimaroloResearch and development tax credits for companies which qualify as small and medium enterprises (SMEs) were introduced from April 2000. In Budget 2001 we announced a consultation on similar tax credits for larger companies. The consultation has now closed and we are analysing the responses.
Regional tax measures present particular problems through the distortions they can introduce into the tax system and the difficulties of developing workable, yet straightforward provisions.
§ Mrs. Curtis-ThomasTo ask the Chancellor of the Exchequer what plans he has to(a) extend the research and development tax credit programme and (b) remove employers' national insurance contributions on stock options. [6607]
§ Dawn PrimaroloResearch and development tax credits for companies which qualify as small and medium enterprises (SMEs) were introduced from April 2000. In Budget 2001 we announced consultation on similar tax credits for larger companies. The consultation has now closed and we are analysing the responses.
We have no plans to remove employers' national insurance contributions from employee share options. The application of national insurance contributions to the exercise of share options is part of the Government's general policy of aligning income tax and national insurance. However, in response to concerns from business about the uncertainty of their national insurance liability, we introduced an easement in July 2000. This allows companies to pass their liability on share options to their employees with their agreement. So far 900 companies have taken advantage of this measure.