In his Autumn Statement today the Chancellor referred very briefly to the introduction of an “above the line tax credit in 2013 to encourage research and development by larger companies.”
There are no further details to be released at present and we understand this will not feature in the draft Finance Bill 2012 to be published next week.
However we understand that a new consultation exercise will be announced at the time of the budget in spring 2012, to consult on how the proposed rules will work in practice. This will cover the design, complexity and compliance challenges that will arise on implementation of this radical change in the method of giving the R&D tax relief to large companies.
We have provided a more detailed look at the background behind this announcement and the implications for companies claiming this relief on our website. Please click here to read this.
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. We welcome the announcement today and the opportunity to consult on forthcoming implementation of this valuable extension to the relief for large companies.
Please do not hesitate to contact John Moore on 0207 292 8850 or at firstname.lastname@example.org if you would like to discuss the potential impact of this change to your R&D tax relief claims, 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.