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
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