Schedule 12 - Tax relief for expenditure on research and development

Part of Finance Bill – in a Public Bill Committee at 5:45 pm on 21st May 2002.

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Photo of Mr Howard Flight Mr Howard Flight Conservative, Arundel and South Downs 5:45 pm, 21st May 2002

The two amendments are straightforward and echo the brief remarks that I made at the beginning of the stand part debate on clause 50. It is entirely understood and correct that the reliefs available to SMEs are more favourable than those offered to large enterprises. However, comments that we have received from industry leaders lead us to believe that some of the conditions attached to the reliefs for small companies could be onerous and it might be simpler for small companies to claim a less restricted, albeit less generous, relief under this new measure. It would also, obviously, for those who chose to do that, render the transition from small to large much simpler. Both the IOD and the CIOT have suggested that it would be sensible to move to a simple, volume-based system in general.