§ Mr. SalmondTo ask the Chancellor of the Exchequer, if he will make a statement on the additional support he intends offering small and medium-sized enterprises to increase research and development investment. [36414]
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§ Mr. BoatengBudget 2000 introduced an R&D tax credit for small and medium-sized companies. It provides a tax deduction of 150 per cent. of the cost of all qualifying R&D expenditure. Under this enhanced relief the cash cost of R&D will be reduced by 30 per cent. for a company paying tax at the small companies' rate. Companies that are not yet in profit can take the relief up front and reduce the cash cost of their R&D by 24 per cent.
To encourage high risk investment by small enterprises PBR 2001 announced:
an increase in the gross asset limit for Enterprise Management Incentives (EMIs) from £15 million to £30 million.publication of a prospectus for a 7£50 million early growth fund to help at least 1,000 businesses access the risk capital they need to develop and grow.