Time to claim R&D tax relief and credits

Submitted by myles on Mon, 12/03/2007 - 15:41.

The government is planning to deliver a 75 per cent increase in research and development as a percentage of GDP by 2014, to remain competitive in the global market.

One method of doing this is through research and development (R&D) tax relief and credits in the corporate tax system. R&D tax relief is available for SMEs from 1 April 2000 and for large companies from 1 April 2002.

Only revenue expenditure for tax purposes is claimable under the R&D tax relief programme. Capital expenditure is excluded.

Revenue expenditure which is taken to the balance sheet as an intangible asset is also allowable in full even if less than 100 per cent of the expenditure is amortised.

SME Web - Time to claim R&D tax relief and credits by BTRCL own Greg Howe