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Companies can currently claim additional tax relief for expenditure of a revenue nature incurred on qualifying “research and development” activities.
Legislation is being introduced by the Finance Bill 2011 to increase the rate of the additional tax relief from 75% to 100% for qualifying expenditure incurred by small or medium-sized enterprises (SME’s) on or after 1 April 2011.
This gives a total tax deduction of 200% on the expenditure incurred and an effective corporation tax relief equal to 40% (based on the current 20% small companies corporation tax rate).
If a company is currently loss making, which it may be during the early years of trade, the loss applicable to research and development can be surrendered in return for the payment of an “R&D tax credit”.
The government is currently involved in consultation to introduce further changes in respect of expenditure incurred on or after 1 April 2012 as follows:
We can assist you with the submission of successful claims by;
Corresponding with HMRC in relation to any further information required and agreeing the claim.
More details of our services can be found via the following links:
