A company incurring qualifying research and development (R&D) expenditure from 1 April 2015 can claim a deduction equal to 230% of the relevant costs incurred in calculating its taxable total profits. This document discusses the rules in detail, together with the cap on R&D aid; R&D tax credit; the outcome of 2015 consultation process; and the detail on the advance assurance for small companies.

Points discussed within this guidance note:

> Research and development (R&D) tax relief

Research and development tax credit or tax relief may be available. A company incurring qualifying R&D expenditure from 1 April 2015 can claim a deduction equal to 230% of the relevant costs incurred in calculating its taxable total profits. To qualify as a small or medium sized enterprise (SME) the company must be meet thresholds set out in this note.

> Cap on R&D aid

There is a cap on the amount of R&D tax relief that a company is able to claim through the SME scheme. It is calculated by carrying out a calculation using the formula set out in CTA 2009, s 1114. This note explains how to do this.

> R&D tax credit

> Outcome of 2015 consultation process

> Advance assurance for small companies


To view the full guidance note register for a free trial or if you already have access to TolleyGuidance please use the 'login' button below:

Request a Free Trial to TolleyGuidance to gain access to the full article

TolleyGuidance is produced by specialists within the field, our tax guidance materials provide actionable insights and practical guidance to support you day-to-day. We don’t just inform you about the latest changes in the tax world. We take the time to explain the implications and, most importantly, what actions you need to take for your clients.


A bit about you:

Please note that all fields marked with a * must be filled in
Salutation
First name*
Last name*
Company*
Job title*
Email*
Phone*
Postcode