UK chancellor Jeremy Hunt has announced an enhanced R&D tax relief rate for innovative SMEs in the Spring Budget unveiled recently. It aims to incentivize innovative businesses that take significant financial risk through heavy investment in R&D through cash payments for every £1 invested. This will be generated by targeting UK taxpayer support to motivate life science entrepreneurs to put in more private investment, enabling them to grow and accelerate innovation in the UK. The scheme for SMEs investing over 40% of their total operating costs in R&D and not yet making a profit will receive a cash payment of 27p for each £1 they have invested.
