Robert Langston (Saffery Champness) answers a query on whether a UK company which undertakes R&D for its overseas parent company is able to claim R&D tax credits.
Question
We are a UK company which undertakes R&D for our overseas parent company and receives remuneration on the basis of cost plus 5%. Are we able to claim R&D tax credits and is there anything else which we need to consider? The group qualifies as an SME under the definition in CTA 2009 s 1120.
Answer
There are two key issues to consider when determining if R&D tax credits are available under the SME scheme (CTA 2009 Part 13 Chapters 2 to 4).
Firstly condition D in s 1052(5) requires that ‘the expenditure is not incurred by...
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Robert Langston (Saffery Champness) answers a query on whether a UK company which undertakes R&D for its overseas parent company is able to claim R&D tax credits.
Question
We are a UK company which undertakes R&D for our overseas parent company and receives remuneration on the basis of cost plus 5%. Are we able to claim R&D tax credits and is there anything else which we need to consider? The group qualifies as an SME under the definition in CTA 2009 s 1120.
Answer
There are two key issues to consider when determining if R&D tax credits are available under the SME scheme (CTA 2009 Part 13 Chapters 2 to 4).
Firstly condition D in s 1052(5) requires that ‘the expenditure is not incurred by...
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:
