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Research: Tax Credits

Volume 461: debated on Wednesday 20 June 2007

To ask the Secretary of State for Trade and Industry what discussions he has had on research and development tax credits and their potential extension to include money spent on the design process itself. (144038)

My right hon. Friend the Secretary of State has had no recent discussions on this subject. Research and development (R&D) tax credits are already available for qualifying costs of R&D, as defined under the DTI’s guidelines of 5 March 2004. The Department has sought to make clear the scope of coverage of the guidelines, both in awareness-raising literature published last November (prepared in consultation with HM Treasury and HMRC) and during direct contacts with industry during the normal course of our work.

R&D takes place where an activity seeks to achieve an advance in science or technology through the resolution of scientific or technological uncertainty. Design can be R&D and when it is, R&D tax credits are available.