The Society is delighted that in today’s Spring Statement, the Chancellor Rishi Sunak announced that the definition of research and development (R&D) for tax reliefs will be expanded by clarifying that pure mathematics is a qualifying cost. This will support the growing volume of R&D underpinned by mathematical advances.
In May 2021, the CMS (supported by the LMS) wrote to Her Majesty’s Treasury regarding R&D tax relief, which supports companies that work on innovative projects in science and technology, and the fact that work in pure mathematics did not qualify for the scheme (as mentioned explicitly on the government website). This followed an earlier proposal in the Bond Review that mathematical sciences be encompassed in the HMRC definition of science and technology and included in the tax credit scheme. The Society is pleased to see the impact of this work in the changes announced by the Chancellor today.