Autumn Statement 2016: Impact on Entrepreneurs

The Chiene + Tait Entrepreneur Team has read through the information released following the Autumn Statement this week and identified three key areas:

1. Research & Development

  • Strong focus on facilitating growth for research and development and innovative companies:
    • Additional £4.7 billon funding by 2020-21 in R&D funding,
    • New Industrial Strategy Challenge Fund – support collaborations between business and UK science base to be managed by Innovate UK,
    • Additional funding to increase research capacity and business innovation – substantial increase in grant funding through Innovate UK,
    • Review of tax environment for R&D to find ways to build on ‘above the line’ tax credit,
    • £100m to be provided until 2020-21 to incentivise university collaboration in tech transfer and working with business.

2. Investment

  • Additional £400m invested in Venture Capital funds by the British Investment Bank to unlock £1bn new investment in innovative firms to aid scale.
  • Social Investment Tax Relief:
    • Increase of amount social enterprises can raise from £250k over three years to £1.5 million,
    • Further changes (TBC) to ensure well targeted,
    • Certain activities including asset leasing to be excluded,
    • Nursing homes and residential care homes to be excluded initially then accreditation system to be introduced to allow investment to qualify in the future,
    • Limit of full time equiv. employees to be lowered to 250,
    • Review to be undertaken within 2 years of enlargement of scheme,

3. Share Schemes

  • Employee Shareholder Status – tax advantages to be abolished for arrangements entered into on or after 1 December 2016 and scheme subsequently closed completely.

 

If you have a query about the Autumn Statement 2016, please drop our Entrepreneur Team a line at entrepreneur@chiene.co.uk.