UK unveils R&D support for AI, quantum and robotics
UK Chancellor Rishi Sunak released the government’s spring statement yesterday, March 23, delivering tax breaks for IP owners undertaking research and development (R&D) in the AI, quantum computing, and robotics sectors.
Speaking in the House of Commons in London, Sunak also raised the possibility of further innovation relief for future green energy-related schemes.
“The spring Statement has a heavy emphasis on supporting UK based innovation, not just in the highly politicised areas of energy and the environment, but also specifically highlighting other areas such as AI, with some emphasis on encouraging wider public investment in key R&D sectors,” said Marks & Clerk’s head of energy and environment Andrew Docherty, plus Daniel Sizer and Tomas Karger.
R&D tax relief is to be extended to cover cloud computing, including storage, which the AI and machine learning industry heavily relies on, noted the Marks & Clerk team.
“The spring statement looks to allow R&D expenditure on pure mathematics to qualify under the R&D tax relief scheme, with the intention of supporting nascent sectors where the UK has a comparative advantage such as AI, quantum computing, and robotics.”
Miranda Cass, a Bristows tax expert working with innovative businesses, said that IP owners in the tech and life sciences sectors “will be pleased” that the Chancellor is still committed to making the UK’s R&D tax credit schemes more generous in the hope that this will attract more enterprises to put their R&D activities in the UK—while acknowledging that the regime is not currently working as it should be.
“This was heralded in the last budget and a report followed highlighting potential areas of reform,” said Cass, who noted that reforms to the R&D expenditure credit available to larger businesses may be made to make this relief more beneficial.
Andrew Fearnside, senior associate and patent attorney at Mewburn Ellis, welcomed the mention of the UK’s “vibrant and growing” quantum computing sector.
“Its particular strength is in mathematically highly complex quantum computing algorithms having application to sectors ranging from materials science to fintech,” said Fearnside.
“Recent patent landscape studies show that, of all the quantum technology sectors, Europe as a whole currently has a significant presence only in quantum computing innovation—this reflects the UK’s strength in this sector.”
He added: “The Chancellor’s announcement will surely be welcome news to these UK quantum tech start-ups.”
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