SMEs fear blow on research

Fears arose that small businesses will lose out on tax relief on research and development today as part of the concessions given to big business in the autumn statement yesterday.

chancellor George Osborne increased the relief on R&D for big firms in next spring's Budget from the present 130% relief on qualifying spending. But SMEs, whose relief is to rise to 225% in April, could be punished as a result.

"There's a danger that the tax inspectors will tighten their interpretation of the rules for small firms when the higher rate for large companies comes into play," said an adviser.