From April 2008 the value of R&D tax relief for SMEs will increase from 150% to 175% and the value of R&D tax relief for large companies will increase from 125% to 130%. As a result SMEs will see an after tax benefit of between 15% and 24% of R&D spend and large companies will see an after tax benefit of around 8.4% of R&D spend.
Awaiting EU approval is the expansion of the definition of a SME. The proposed definition of a SME is a company of less than 500 employees and either turnover not exceeding EUR 100 million or a balance sheet total not exceeding EUR 86 million.

The Independent

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