This months Blog post has a more serious note.
We were very encouraged to hear recent reports from CBI president Helen Alexander (above) of the organisations un-faltering support for the R&D tax credit program.
The business group wants the tax credit to be extended, and serious consideration to be given to introducing a “royalty box ” system – where revenues from certain areas of IP, such as drug patents, are taxed at a lower rate, encouraging investment.
Speaking at the CBI’s East of England annual dinner this month she said the development and exploitation of IP will play an important role in the UK’s economic recovery.
“We want to see future tax changes have to pass a test, which is: Will it make the UK a more attractive place for businesses to invest in, develop and exploit IP?” she said.
“We must have a stable and competitive tax framework if we’re to incentivise IP development and exploitation. Change and uncertainty undermine the confidence of those making long-term investment decisions.”
The UK’s current R&D tax credit scheme works well, but other countries are fast catching up, said Alexander.
“The US has recently decided that its R&D tax credit is such an important part of its business landscape that it will make the credit permanent. Competing with the US is never easy, and so any plans to remove the UK’s R&D tax credit should be rejected out of hand as dangerously short-sighted,” she said.
Let’s hope these views are also the views of government whoever that may be in the future.
Posted on Tuesday, 15th September, 2009