Research and Development Tax Credit

HC Deb 21 October 2003 vol 411 c491W

Dr. Cable

To ask the Chancellor of the Exchequer how much was allocated to small firms using the research and development tax credit in financial years(a) 2001–02 and (b) 2002–03; and if he will make a statement. [132884]

Dawn Primarolo

It is not possible to separately identify small firms from our data. However, it is possible to identify Small or Medium Enterprises (SMEs). Latest estimates of the total cost, on an accruals basis, of the research and development tax credit for 2001–02 and 2002–03 are available on the Inland Revenue's website at http://www.inlandrevenue.gov.uk/stats/tax_expenditures/g_t05_1.htm. For 2002–03, the first year that large companies were eligible to claim R&D tax credits, the estimated cost of support for companies which are defined as SMEs for the purposes of the tax credit is £200 million.