The transition from Growth Grants
The Government has announced its intention to introduce an R&D tax incentive by 2019.
The Growth Grant administered by Callaghan Innovation will be phased out with the introduction of the Tax Incentive but will continue as normal until final decisions are made by the Government.
The work on the detail of the transition arrangements will be guided by the following principles:
- Maintain business confidence in government support for R&D
- Provide certainty and predictability of funding for businesses carrying out R&D
- Support the successful implementation of the R&D Tax Incentive
- Avoid a fall in business expenditure on R&D caused specifically by the transition arrangements
- Provide for a simple and efficient transition for existing Growth Grant recipients
- Avoid fiscal risk to Government accounts
- Respond to the needs of various business types while ensuring no firms are specifically favoured or disadvantaged by the transition process.
In parallel with the public consultation on the proposals, the government will consult on the process for transition to the Tax Incentive with existing recipients of Growth Grants and businesses with Project Grants who were on a trajectory to apply for Growth Grants.