Invest Northern Ireland has welcomed the R&D measures announced by the Chancellor George Osborne as part of the Budget statement.
Improvements to the R&D tax credit system and the new Patent Box regime are part of wider government measures to encourage investment in R&D and help innovative businesses to grow.
Alastair Hamilton, Chief Executive, Invest NI said: “The Patent Box regime offers a welcome reduction in the corporation tax rate for companies engaged in R&D activities and will benefit them almost immediately.”
Under the Patent Box regime, from 1 April 2013, any profits earned which can be attributed to existing or new patents, or similar intellectual property, will have a 10 per cent corporation tax rate applied. Wider tax credit changes include the 10 per cent above the line credit for R&D investments by large companies, which will deliver significant tax savings to companies which are investing in new products and concepts.
Alastair Hamilton added: “The wider R&D tax credit changes will help to strengthen the growing culture of innovation in Northern Ireland, making the R&D journey even more financially viable for companies of all sizes across all sectors. The changes will also add value to our inward investment proposition, encouraging investment and the creation of high quality jobs in Northern Ireland by high-tech international firms.
“To ensure that Northern Ireland companies can reap maximum benefit from the full range of R&D tax incentives, Invest NI is working with PwC to develop a decision making tree and a cost-benefit analysis tool. I would encourage all firms, from experienced innovators, to those who have yet to take the first steps towards R&D, to look at the positive impact that innovation can have on business growth and access the support available from Invest NI.”