AS2011: ‘above the line’ accounting for R&D credits

THE GOVERNMENT has changed its policy on research & development tax credits for “above the line” accounting.

Chancellor George Osborne said that the government will introduce “above the line” accounting – and move from the current “superdeduction” method of reducing a company’s taxable profits at the year end to a system that reduced the company’s final tax liability. This was first announced in the consultation on R&D tax credits released this year.

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