Carmen Aquerreta and Chris Harrison examine the draft legislation on ‘above the line’ tax relief for R&D expenditure.
From 1 April 2013 companies claiming R&D tax relief under the large company scheme (both genuinely large companies and SME’s claiming under the large company scheme) will be able to claim an ‘above the line’ (ATL) taxable credit to the value of 9.1% of their qualifying R&D expenditure. The credit will be fully payable net of tax to companies with no corporation tax liability.
This move away from the current super-deduction scheme is the latest and perhaps most significant change to follow Treasury consultations which began in 2010. It complements the introduction of patent...
