March 19th, 2014 / Insight posted in MKS Comments

Budget 2014: R&D credit regime made more generous

“SMEs investing in qualifying R&D can obtain a corporation tax deduction for 225 per cent of the amount they spend,” says Mike Hayes, tax partner at Kingston Smith. “Where a company is making losses it is possible to surrender the R&D deductions, or the loss if smaller, for a 11 per cent corporation tax repayment.  This credit will be increased from 11 per cent to 14.5 per cent for qualifying expenditure incurred on or after 1 April 2014. This will increase the rate of the cash credit payable to SMEs that conduct R&D but do not have corporation tax liabilities. This is a welcome change and adds to an already generous R&D credit regime. The UK is an attractive place to develop intellectual property.”