The following Corporation Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
Expenditure on R&D can be relieved in the following ways:
There is a requirement for both the SME and large company R&D reliefs that the R&D must be relevant R&D for the claimant company which means that it is related to a trade carried on by the company or the trade of the company will be derived from the R&D in the future.
In addition, the qualifying R&D expenditure has to be allowable as a deduction in computing the profits of the trade subject to corporation tax. This rule is relaxed for intangible assets where revenue R&D expenditure is included in the cost of the intangible on the balance sheet. In this situation, the intangible R&D expenditure can be claimed in full in the year when it is incurred as long as all other conditions for R&D relief are satisfied. Any subsequent amortisation would not be allowed as a deduction.
See the Research and development tax relief summary diagram which summarises R&D tax relief.
To qualify as an SME, the company must be independent and have:
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