This document summarises the responses to the consultation published in January 2023 on the design of a potential research and development tax relief scheme that merges the existing RDEC and SME schemes, as well as setting out the next steps the Government intends to take on this.
The Government believe merging schemes would be a significant opportunity for tax simplification, provide more clarity and certainty to SMEs, and help to drive innovation in the UK.
The Government has not yet taken a decision on whether to merge and intends to keep open the option of doing so from 2024. A decision on whether to merge will be made at the next fiscal event.
