TaxCorporate TaxBudget follow-up: Tax experts welcome R&D changes

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.’

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

1m Emma Rawson, ATT Technical Officer
How might Brexit affect UK tax policy?

Brexit & Economy How might Brexit affect UK tax policy?

1m Santhie Goundar
Corporation tax losses – your newly flexible friends

Corporate Tax Corporation tax losses – your newly flexible friends

3m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

4m Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

4m Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

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

7m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

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

7m 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

8m Alia Shoaib, Reporter