![]() ![]() ![]() Consequently, the benefits of the relief will be vulnerable to future increases in corporation tax rates. As an 'above-the-line' credit, this new R&D relief will itself be subject to corporation tax in the hands of the recipient company (similar to under the current RDEC scheme).The headline credit rate under the merged scheme will be 20% (in line with the more generous rate under the current RDEC scheme that has applied since April 2023).Key points from these announcements are set out below. However, continued access to the enhanced reliefs under the SME scheme should be warmly welcomed and is likely to be of greatest interest to businesses in the life sciences and tech sectors. Tax practitioners may sigh at the retention of a separate scheme for the benefit of a relatively small number of SMEs (and the potential complexities for companies that transition between the two schemes). The Autumn Statement confirmed the creation of 'a new simplified R&D tax relief' combining the existing R&D Expenditure Credit (RDEC) and small or medium enterprise (SME) R&D schemes for accounting periods that commence on or after 1 April 2024.Īlthough this announcement would indicate a welcome (to some) simplification and move away from a two-tier system for R&D reliefs, the Chancellor followed up with an ongoing commitment to provide enhanced R&D reliefs for loss-making R&D 'intensive' SMEs under the existing SME R&D scheme. Autumn Statement: research and development (R&D) tax reliefs.
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