Commencement of the new SME rate and SME definition

Submitted by Bruce Braithwaite on Fri, 08/01/2008 - 13:48.

EU approval for the change to the SME R&D tax relief rate and to the definition of a SME is in place from 1 August 2008. The relief rate available for qualifying SMEs increases from 150% to 175% of their investment and the size of a company that can qualify as a SME has increased to 500 staff and either turnover not exceeding EUR 100 million or a balance sheet total not exceeding EUR 86 million.

The increase to the relief rate from 125% to 130% for large companies took effect from 1 April 2008.

Small business tax relief for research and development