Sum​mary

Tax incentives, particularly R&D tax credits, the Enterprise Investment Scheme (EIS), and the Seed Enterprise Investment Scheme (SEIS), support business R&D investment in the UK.

R&D tax credits can encourage large multinational companies to invest in R&D in the UK, as they decrease the relative cost of the work. For small companies, the tax credits can promote R&D investment by increasing cash flow to respond to opportunities as they arise.

Small companies find EIS and SEIS invaluable, helping them to attract finance for high-risk R&D activities.

These schemes should be maintained to provide a stable and competitive fiscal environment, supporting companies and investors to make long-term R&D investment decisions.

 

Explainer: Tax incentives (138.42 KB)