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.
- 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 firstname.lastname@example.org.