John Moore of Kingly Brookes LLP brings us up to date on the latest changes to the way the R&D tax relief schemes will operate.
As we previously reported in our article dated 22 September the Government had announced its intention to make changes to the way the R&D tax relief operates and to legislate for these in the Finance Bill 2012. The Government published the draft legislation for comment on 6 December 2011.
Much of the detail published today puts into effect what was announced previously at the budget. Although we were expecting potential changes to the way the rules work with respect to subcontracted R&D and on the continued inclusion of Qualifying Indirect Activities (QIAs) these did not occur, however the Government recognises that further work on the issue of subcontracting is required.
We have provided a more detailed commentary of the announced and proposed changes on our website. Please click here for access. Changes to the R&D relief in Draft Finance Bill 2012.
Again the Government are demonstrating their commitment to listening to the view of business about how best to target the reliefs that are designed to incentivise the performance of R&D in the UK. The Government have estimated that these changes will cost approximately £60m per year. We welcome the on-going commitment to the improvement of the schemes, in this case particularly to the advantage of SMEs who often have an urgent need for effective cash funding of R&D.
Please do not hesitate to contact John Moore on 0207 292 8850 or at email@example.com if you would like to discuss this, or any other aspect of the R&D tax relief regime.
About Kingly Brookes
Kingly Brookes is a firm of chartered accountants based in Cambridge and London specialising in working with technology companies to optimise their claims for R&D tax relief. We combine a deep technical knowledge of the working of the two schemes together with a practical hands on approach to claim preparation proven to optimise your claim potential and ensure certainty over your claim outcome.