Spring Statement 2022—key IP announcements on R&D tax relief reforms

Article summary

The Spring Statement 2022, delivered by the Chancellor of the Exchequer, Rishi Sunak, on 23 March 2022, set out further detail in respect of the government’s proposed reforms to the research and development (R&D) tax relief system. In particular, Sunak confirmed that the government will legislate to ensure that R&D undertaken overseas can qualify for tax reliefs where there is a regulatory requirement for this work to be carried out overseas or where material factors that are not present in the UK are required for the research, and that from April 2023, all cloud computing costs associated with R&D will be brought into the scope of the R&D tax reliefs to allow companies to claim for costs related to the storage of vital data. In addition, recognising the growing volume of R&D being undertaken which is underpinned by mathematics, the government will expand the R&D for tax reliefs to include pure...