Potential tax credits good news for standards
2 December 2005
The UK’s National Standards Body BSI British Standards welcomes today’s announcement from HM Treasury (HMT) and HM Revenue and Customs (HMRC) of discussions to consider giving tax credits for work to develop standards.
Director of BSI British Standards Mike Low said, “BSI is delighted the Government has recognised the importance of standards to innovation and business. All British, European and international standards rely on the participation of thousands of experts from UK business, research institutions, charities and others who between them contribute £2.5bn each year to the national economy.
"We therefore welcome the opportunity to reward this significant contribution and look forward to discussions with HMRC and DTI to determine the extent to which this standards development work should be considered R&D for tax purposes.”
- Ends -
Notes to editors
The report - “Supporting growth in innovation: next steps for the R&D tax credit” was published today by HMT and HMRC in response to their July 2005 consultation “Supporting growth in innovation: enhancing the R&D tax credit”.
Section 2.22 of the report reads:
Some respondents to the consultation sought clarification on whether work to develop technical standards is R&D for tax purposes. The Government recognises the importance of such standards to innovation and to business. The key issues to consider are whether it is R&D for tax purposes and whether the loan of company R&D staff to standard setting bodies is relevant to that company's trade. HMRC will consider with DTI and standards bodies the extent to which this work is or could qualify as R&D for tax purposes and seek to clarify the position through future guidance.
BSI’s response - to the initial consultation requested clarification on the ability of industry to qualify for tax credits for companies participating in standards development activities. Copies of BSI’s response to the public consultation document are available on request.
BSI - BSI British Standards is the UK’s national standards body, working with government, business and consumers to represent UK interests and facilitate the production of British, European and international standards to meet economic and social needs.
For media information:
Public Relations Officer
Tel: +44 (0) 20 8996 7248
Mob: +44 (0) 7717 451 990
For further information on British Standards please visit www.bsi-global.com/british_standards