Carry out R&D? RDEC claimants could benefit from the Budget.

Companies that carry out Research and Development (R&D) and claim Research and Development Expenditure Credit (RDEC) may benefit from announcements in the Autumn 2017 Budget.

Increasing the amount of R&D carried out by companies is a key part of the government’s aim to increase productivity and promote growth. This measure increases the tax relief for large companies (and small and medium sized enterprises in some cases) that carry out qualifying R&D and claim the RDEC.

The RDEC (also known as the ‘Above the Line’ credit) is a standalone credit that is brought into account as a receipt in calculating profits. The current general rate is set as 11% of qualifying R&D expenditure. This measure increases the rate of the RDEC from 11% to 12%.

The increase in the RDEC rate will have effect for expenditure incurred on or after 1 January 2018.

Article from ACCA In Practice