Budget follow-up: Tax experts welcome R&D changes
IAS 2005 has triggered changes to claiming R&D tax credits that have been welcomed by tax experts.
Link: Budget 2004
UK businesses can now claim R&D tax credits when incurred, instead of when the expenditure is amortised in the profit and loss account over later periods. David Cobb, Deloitte partner and head of R&D services, said that the changes made to R&D tax credits are a ‘good thing’.
PwC tax director Diarmuid MacDougall added that the new treatment of R&D tax credits is a positive move that ‘won’t disadvantage taxpayers’.
But Cobb warned that the Budget did not make it clear as to whether the treatment of relief was only applicable for businesses fully compliant with IAS 2005. ‘The relief has been announced in the context of IAS 2005. We will know for sure when the Finance Bill comes out on 8 April.’