Ambiguity on what is considered R&D raises questions around data and Cloud tax reliefs
Priya Raju, Director of Cloud Transformation, comments on today’s Autumn Budget
Priya Raju, Director of Cloud Transformation, comments on today’s Autumn Budget
Commenting on the Autumn 2021 Budget, Priya Raju, Director of Cloud Transformation, KPMG UK, said:
“Looking at today’s successful businesses, they all have one thing in common: they are all looking to leverage their data as much as possible. By extending R&D tax reliefs to data and cloud, in theory, more UK organisations can benefit from the benefits that better data storage, management and analysis can bring.
“Cloud and data are necessities for any business that wants to digitally transform. Companies – banks in particular – are struggling to implement cloud and data because the costs are often incredibly prohibitive. What’s more, with the volume of data growing exponentially (by 2025, estimates predict that the amount of data generated each day will reach 463 exabytes globally), these associated costs are only going to skyrocket. While today’s announcement is designed to help soften that blow, questions remain about the actual benefits the announcement will generate. Ambiguity around what the Government classifies as R&D could mean that the reliefs sound better on paper than they are in practice.”
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