Seema Malhotra – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Seema Malhotra on 2016-02-03.

To ask Mr Chancellor of the Exchequer, what the (a) primary and (b) secondary policy purposes are of research and development tax credits.

Mr David Gauke

R&D tax credits support businesses to invest in Research & Development (R&D). They play a key role in the Government’s objective to have a tax system that supports productive investment. A 2015 evaluation by HM Revenue and Customs found that each £1 of tax foregone by R&D tax credits stimulates between £1.53 and £2.35 of additional R&D investment.