Budget 2011 contained a number of announcements on reforms to the R&D tax credits schemes.
The Government has published its response to the 2010 R&D tax credits consultation which closed on 22 February 2011.
The document also includes the Government’s recommendation for further consultation on R&D credits.
This consultation is part of the corporate tax reform process and seeks views on proposals to simplify the schemes and make them more effective. These include the relief for Qualifying Indirect Activities; how to give relief for subcontracted ‘routine’ activities; the removal of the PAYE/NICs cap and potential changes to the ‘going concern’ definition.
The consultation document can be found here