Money Matters - Autumn 2008

More tax relief on R&D

Companies that carry out research and development (R&D) may be entitled to enhanced tax relief. Small and medium-sized companies can deduct 175% of qualifying expenditure incurred on R&D projects from 1 August 2008 when calculating their trading profits. Large companies can deduct 130% of qualifying costs from 1 April 2008.

To obtain payment of tax credits, the company must make a claim in its corporation tax return. Please get in touch if you would like help in deciding whether to claim a payment.