Annual Report 2008: Part one - Policy, legislation and major initiatives
Business tax review
Tax changes resulting from the Business Tax Review came into force on 1 April 2008. The new R&D tax credit, designed to encourage companies to increase their investment in research and development, was enacted in December 2007. It was part of the business tax package announced in Budget 2007, other features of which were the reduction in the company tax rate to 30% and an associated reduction in the tax rate for certain savings vehicles, both enacted in May 2007. Together, these changes constituted the most substantial business tax changes to be introduced since the late 1980s.
We consulted with stakeholders on the R&D tax credit, and produced draft guidance material and online information to assist customers to consider their eligibility and understand record keeping requirements. We also worked on an electronic delivery model and established a dedicated team to educate and inform customers and administer the R&D tax credit.
Date published: 15 May 2009
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