Tax breaks for R&D to be unveiled

Tax breaks for R&D to be unveiled

PLANS TO give companies tax breaks in return for increased investment in research and development are expected to be unveiled today by the Secretary of State for Trade and Industry Peter Mandelson. The proposal will be one of the key elements in his White Paper on competitiveness, which will seek to strengthen links between the science base and industry and promote entrepreneurship.

The introduction of tax credits for R&D investment and incentives to attract more venture capital into start-up businesses were foreshadowed in the Chancellor's pre-Budget statement last month. The Prime Minister Tony Blair held a seminar for scientists and venture capitalists in Downing Street yesterday to discuss issues such as funding.