Business Management

IRD attitude on research off-putting.
He said business was told the new tax credit regime would not be restricted to white-coat people doing scientific research.

‘I”d be surprised if any business got an R&D tax credit unless they employed scientific boffins in white coats.’

Mark Daly, senior tax manager with accountancy firm Grant Thomson, said the government clearly believed business was under-investing in R&D, and wanted to change that through the tax system.

‘But from where we sit, Inland Revenue is reading the new law so narrowly you have to ask whether the government”s objectives will be met.’

Daly said problems were arising not only from narrow definitions of what constituted research and development.

For example, the guidelines said intellectual property must be owned by the business carrying out R&D if tax credits were to be granted.