The Government provides generous tax incentives to help new and innovative businesses in the UK, including the automotive and motor racing industries. The rate of corporation tax is currently 20% and will be 18% in 2020, the lowest of any economy in the G20.
The Government supports research and development (R&D) in the automotive and motor racing industries through R&D tax reliefs. At Summer Budget 2015, the Government also announced that it would increase the permanent level of Annual Investment Allowance to £200,000 which will further support investment in plant and machinery.
The Government has also committed £86 million through the Advanced Propulsion Centre to secure Britain’s strength in the research, development and commercialisation of low carbon vehicle technologies.