Innovation in the news
Deloitte thinks the 10 % rate for R&D relief which will provide £1.1bn of extra support to R&D over the next 5 years will have a real impact on jobs and growth in the UK
The new R&D expenditure credit scheme for large companies will provide support to a wide range of industries and is predicted to provide additional relief of £1.1bn to innovative companies over the next 5 years. This together with the patent box relief which comes into effect from April this year and other measures such as the £2.1bn relief for the aerospace industry announced this week provides a strong package of support for innovation in the UK and a boost to global competitiveness. Particular beneficiaries will be large companies who do not have a tax liability as these companies will be entitled to cash credits for the first time enabling them to get an immediate benefit from the regime, and SMEs that carry out R&D subcontracted from others. This relief will therefore affect a broad spectrum of the UK economy.
The impact of the change will be the establishment of a closer connection between the relief and the R&D and technology teams. Deloitte and Industry has long campaigned for a rate of relief which is at least 10% as a double digit rate of relief is an important psychological factor.
We expect that the design of the new R&D expenditure credit will be largely consistent with that set out in the recent consultation with the exception of the PAYE/NIC cap where some detailed revisions are expected to be set out in the Finance Bill next week .
Patent Box - One year on
The following article first appeared in Lawyer Monthly magazine, September 2013. Carmen Aquerreta talks about how the Patent Box regime has affected the industry since it was first announced.
DownloadPatent Box - One year on (PDF)
R&D Tax Relief
This article first appeared in Tax Jounal in March 2013. Carmen Aquerreta and Chris Harrison explain the Above the Line R&D credit.
R&D Tax Relief (PDF)