HMRC issued a consultation Jan – March 2023 which considered merging the two R&D schemes. Although a decision has not definitively been made by HMT to merge the schemes, on 18th July 2023 draft legislation was issued for a merged R&D Tax Credit Scheme, which may come into effect as early as next year. The construction sector is very concerned by a section in the draft legislation that seeks to prevent a claim for tax credits for R&D expenditure if it has arisen by virtue of activities having been “contracted” to the claimant or deemed “subsidised” by a customer.
The CLC has produced this paper which has been submitted to the Treasury.
