The government ended 2017 very upbeat in their support for more investment into research and development. In the November Budget 2017 they raised the Research and Development Expenditure Credit (RDEC) from 11% to 12%. The new rate applies to R&D expenditure from 1 January 2018.

The RDEC scheme applies to R&D claims from UK registered limited companies with over 500 employees, or UK registered Small and Medium Enterprises (SMEs) that are providing R&D services as a sub-contractor to a large company and to some SME R&D projects where project costs are covered by grant funding.

Research and development funding was also featured in the new Industrial Strategy published 27 November 2017. Investment in R&D is seen as a key plank in increasing productivity and providing more skilled and better-paid jobs.

The government's vision is of "An economy driven by innovation that will see the UK becoming a world leader in new technologies such as Artificial Intelligence (AI), immersive technology, driverless cars, life sciences and FinTech."

Find out more about R&D tax credits here.