British VCs welcomed
the new tax reliefs announced for R&D focussed SMEs announced by
the U.K.'s finance minister Jeremy Hunt in the spring budget but showed
disappointment as the government didn't reverse its decision to cut the
previous R&D tax credit plan.
British Venture Capital
Association's director-general Michael Moore called the changes
announced to the R&D tax credits in the autumn budget "potentially
damaging" to the nation's high-growth startups.
- The U.K.'s latest budget has been developed to make the nation a "science and technology superpower."
- Under the new budget, AI and life sciences SMEs can claim 33% of their R&D investments back from the government.
- However, despite the new tax reliefs, startups stand to lose around £100,000 ($120,553) per year due to the previous changes announced in Nov. 2022, per the Coalition for a Digital Economy.
- The government pledged £2.5B ($3.01B) for quantum technologies and another £900M ($1.08B) for AI research resources.
