Carrie Rutland and James Rolfe (BDO) highlight practical issues concerning the introduction of the new scheme which takes effect from April.
Government objectives for R&D reform
The government has three key objectives underpinning the programme of R&D reforms.
To raise UK investment in R&D to 2.4% of UK GDP by 2027. R&D tax relief contributes to that goal by reducing the cost of innovation for UK companies and the government wants to make it more effective to increase ‘additionality’ – the extra R&D spend that companies claiming the relief make.
Simplifying the R&D regime in line with HM Treasury’s overarching objective of tax simplification.
To tackle the suspected errors and abuse of the R&D tax relief regime. HMRC has already taken significant steps here by introducing:
the claim notification requirements that apply for accounting periods starting on or after 1 April 2023;
the Additional Information...
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Carrie Rutland and James Rolfe (BDO) highlight practical issues concerning the introduction of the new scheme which takes effect from April.
Government objectives for R&D reform
The government has three key objectives underpinning the programme of R&D reforms.
To raise UK investment in R&D to 2.4% of UK GDP by 2027. R&D tax relief contributes to that goal by reducing the cost of innovation for UK companies and the government wants to make it more effective to increase ‘additionality’ – the extra R&D spend that companies claiming the relief make.
Simplifying the R&D regime in line with HM Treasury’s overarching objective of tax simplification.
To tackle the suspected errors and abuse of the R&D tax relief regime. HMRC has already taken significant steps here by introducing:
the claim notification requirements that apply for accounting periods starting on or after 1 April 2023;
the Additional Information...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
