TaxCorporate TaxR&D tax credits extension planned

R&D tax credits extension planned

The Treasury and the Department of Trade and Industry have launched a consultation exercise over plans to extend the scope of research and development tax credits.

Link: R&D tax credits increased

Proposals include changing the definitions to allow advanced ‘bought in’ computer software used in research and development to qualify and cover the term ‘consumable stores’ used up during an R&D process.

The proposals follow an earlier decision to allow software written by a company’s own staff in support of an R&D project to qualify for an R&D tax credit – even where the development of the software would not itselfqualify.

The join document says the government is willing to change the rules to include the software – but want industry’s views on how the new rule should be defined to ensure it covers ‘advanced’ software which is ‘consumed’.

The R&D relief was brought in for small and medium sized companies in 2000 and extended to large companies in 2002.

Related Articles

Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

1w Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

1w Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

2w Alia Shoaib, Reporter
‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

1m Emma Smith, Managing Editor
Should I incorporate my buy-to-let business?

Corporate Tax Should I incorporate my buy-to-let business?

2m Emma Rawson
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

3w Austin Clark, Reporter
How to educate your clients about tax avoidance

Corporate Tax How to educate your clients about tax avoidance

3w Clear Books | Sponsored
CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

Corporate Tax CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

3w Austin Clark, Reporter