House of Lords – Call for Evidence

The Finance Bill Sub-Committee is appointed annually by the Economic Affairs Committee to consider the draft Finance Bill from a tax administration, clarification and simplification point of view.

The Government is continuing its work on the draft Finance Bill 2023-24 with the Finance Bill Sub-Committee inquiring into a number of key areas, including the proposed reforms on R&D tax relief.

At ela8, we are pleased to see that R&D tax relief is again the subject of discussion for this Committee, with the inquiry noting:

“The reforms which merge the two existing Research and Development (R&D) schemes as well as providing tax relief for R&D intensive SME’s, propose a single R&D relief and a higher rate of payable tax credit for loss-making R&D intensive SME’s.  The measure aims to simplify the tax system and provide further support to R&D intensive SME’s.”

The Sub-Committee has stated that they are particularly interested in understanding how the above will impact companies and is especially interested in hearing about the views of SMEs.  We have, once again, submitted a response to the House of Lords in respect of the questions raised, and look forward to the publication of their report.