UK CEOs Call for Tax Relief on Market Research

In the UK, a group of CEOs led by Paul Lindley, the founder of ethical children's food firm Ella's Kitchen, has called for tax relief on investment in consumer insight aimed at developing new products and services.

Lindley has the backing of CEOs of other UK-based brands including online DVD rental firm Lovefilm, and shaving products manufacturer King of Shaves. His proposal is that firms receive 150% to 175% allowances for investment in consumer insight - including qual and quant research, market data collection and analysis, customer care support, consumer database-building, and social media interactions.

In an article Lindley (pictured) recently penned for Real Business magazine, he explained that such a scheme could be structured like R&D allowances; to provide relief or cash back if the business is still making tax losses.

He believes that the idea will be attractive to government, as it will help UK SMEs gain a competitive advantage in the global market: generate more employment, more transactions with suppliers and underpin a stronger economy.

'Customer excellence relief would benefit the UK enterprise economy as a whole,' Lindley asserts. 'It would iron out the inherent disadvantage that early-stage firms face when competing with established brands for consumers' hearts and wallets. It would encourage more competition in markets, and give SMEs a better fighting chance to create the best, consumer-focused brands.'

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.