To ask the Chancellor of the Exchequer, with reference to paragraph 4.52 of the Spring Budget Report 2023, HC1183, published on 15 March 2023, what estimate his Department has made of the potential impact of the postponement of restrictions on overseas R&D tax reliefs expenditure on R&D investment in the financial years (a) 2022-23 and (b) 2023-24.
The previously announced restriction on some overseas expenditure will now come into effect from 1 April 2024 instead of 1 April 2023. This will allow the Government to consider the interaction between this restriction and the design of a potential merged R&D relief.
Overall, R&D reliefs will support an estimated £60 billion of business R&D expenditure in 2027-2028, a 50 per cent increase from £40 billion in 2020-21. Expenditure on R&D reliefs is forecast to increase in every year of the scorecard period.