Budget statement answers BIA calls in support of SME’s

The UK BioIndustry Association (BIA) has welcomed statements made by Chancellor George Osborne in last month’s Budget, supporting previous BIA calls for change in respect of SME access to R&D tax credits. The Chancellor announced the introduction of voluntary advance assurances lasting 3 years for smaller businesses making a first claim from autumn 2015, also to reduce the time taken to process a claim from 2016. There will also be new standalone guidance aimed specifically at smaller companies.

The government also announced changes in respect of the Seed Enterprise Investment Scheme (SEIS), Enterprise Investment Scheme (EIS), and Venture Capital Trusts (VCTs) which included extending the period of a company’s eligibility for receiving its first EIS or VCT investment  for up to 12 years except where the investment will lead to a substantial change in the company’s activity; and an increase in the employment limit for knowledge intensive companies from the current 249 employees to 499 employees.

Commenting on the announcements, Steve Bates, CEO of the BIA said: “The BIA has made a continued case for ensuring that tax-advantaged schemes incentivise investment in high risk, innovative sectors such as biotech, where the wider benefits for patients and the economy are vast. In its input to the Treasury consultation on this issue last Autumn, we argued against a lesser limit of 7 years for a company to be eligible as well as increased limits for ‘knowledge-intensive companies’. It is great to see from this Budget statement that Treasury has listened to the BIA and its members.”

“The BIA has also long advocated for advance assurance, was closely involved in previous piloting of the service and recently called for an extended scheme in the recent HMRC consultation. These new commitments are very welcome and make it easier for SMEs to understand what R&D benefit applies to their business and how to navigate that process quickly so that they can get back to the business of innovating the products and therapies of the future.”

For further information from BIA visit:  www.bioindustry.org

The Budget statement and supporting documentation can be found at: https://www.gov.uk/government/publications/budget-2015-documents