What do You Need to Consider?
Posted: Wed Feb 19, 2025 9:24 am
From 1 April 2023, a number of changes are expected to the UK Research and Development (R&D) Tax Relief scheme. This Article summarises the key points arising from the July 2022 HMRC draft legislation for R&D tax relief changes, originally announced in the 2021 UK Autumn Budget.
These changes will take effect for accounting periods beginning on or after 1 April 2023. The changes will impact companies claiming under either of the two schemes (SME or RDEC).
The UK Government has a target to raise investment in R&D to 2.4% of UK GDP by 2027 jordan mobile database and R&D tax relief forms part of that goal, by reducing the cost of innovation for UK companies.
UK R&D Tax Relief
UK Research and Development (R&D) tax relief can prove an extremely valuable tax relief and, for companies carrying out significant qualifying R&D projects, it may mean not having to pay any corporation tax for many years or even claiming a repayment from HMRC.
For small to medium sized enterprises (SMEs), a deduction of 230% of the amount spent on R&D can be made from taxable profits, reducing the corporation tax due. For loss making companies, the scheme allows relief upfront as a cash payment of 14.5% of the ‘surrenderable loss.’
For further information regarding the benefits available and the process that needs to be followed, please contact.
These changes will take effect for accounting periods beginning on or after 1 April 2023. The changes will impact companies claiming under either of the two schemes (SME or RDEC).
The UK Government has a target to raise investment in R&D to 2.4% of UK GDP by 2027 jordan mobile database and R&D tax relief forms part of that goal, by reducing the cost of innovation for UK companies.
UK R&D Tax Relief
UK Research and Development (R&D) tax relief can prove an extremely valuable tax relief and, for companies carrying out significant qualifying R&D projects, it may mean not having to pay any corporation tax for many years or even claiming a repayment from HMRC.
For small to medium sized enterprises (SMEs), a deduction of 230% of the amount spent on R&D can be made from taxable profits, reducing the corporation tax due. For loss making companies, the scheme allows relief upfront as a cash payment of 14.5% of the ‘surrenderable loss.’
For further information regarding the benefits available and the process that needs to be followed, please contact.