Research and Development Tax Credits
HMRC: R&D TAX CREDITS AND ALLOWANCES
LAST UPDATE: Aug 08 GRANT finder Release Sep 08
DESCRIPTION OF AID
-Type. Tax allowance/tax credit
-Term. Unspecified
-Covering. Relief from UK corporation tax for revenue and capital expenditure
on research and development together with additional tax credits
that can be set against profits or received as a payment if a loss is
incurred.
-Support. 100% allowance and a 75% tax credit for SMEs and 30% tax credit for larger companies plus an additional 50% tax credit for vaccines research on AIDS/HIV, Malaria and TB
-Payment. Tax allowance in year of expenditure
-Match Fund. Not applicable
NECESSARY QUALIFICATIONS OF APPLICANT
-Status. Any company or Scientific Research Association
-Type. Incurring expenditure on research and development
-Location. UK
-Other. Only companies or Scientific Research Associations (SRAs) are eligible. SRAs must have a trade which consists solely of scientific research and have a BERR SRA certificate. The definition used for SMEs for this tax relief scheme is twice as large as the EU definition. It includes companies with up to 500 employees
CRITERIA
-Timing. At any time in tax year in which capital expenditure was incurred
-Viability. Research to test possibility of manufacture of product
-Avail. To any organisation who can prove eligible research and development was undertaken by them or on their behalf
-Other. Expenditure does not qualify for allowance if it qualifies for certain other capital allowances
APPLICATION
-Special Form. No
-Discussion. Yes
-Supported By. Proof that expenditure was on scientific research
SPONSORED BY
HM Revenue and Customs - information may be obtained from Local Tax Office or from:
ADDRESS
4th Floor
22 Kingsway
London WC2B 6NR
Tel: (020) 7438 4242 or specialist R&D tax office
Website: www.hmrc.gov.uk