Research & Development: increased rates, restricted qualifying expenditure and improved process


Photo Credit: RDECOM via Compfight cc

The Autumn Statement (delivered on 3 December 2014) has confirmed that Research & Development tax credits will be extended in broad terms, with the following changes being announced:

i)      Increase in the Finance Bill 2015 the rate of:

  • the “above the line” credit to 11% from 1 April 2015; and
  • the R&D credit for small and medium-sized enterprises (SMEs) to 230% from 1 April 2015.

ii)     Exclude in the Finance Bill 2015 the costs of materials incorporated in products that are sold from qualifying expenditure attracting R&D credits from 1 April 2015.

iii)    Launch a package of measures to streamline the application process for smaller companies investing in R&D. This is to involve introducing an advance assurance scheme for small businesses making their first claim and developing new guidance for R&D credits. The government intends to launch a consultation on the issues that smaller businesses face when claiming R&D credits in January 2015.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>