Article contributed by ACCA

Above the line credit introduced for large companies. 

The 2013 Budget sees the introduction of a 10% above the line tax credit for expenditure incurred by large companies.

For R&D purposes, a company is small or medium if it has:

  • fewer than 500 employees; and
  • either turnover of less than 100m Euros or a balance sheet total of less than 86m Euros.

Beyond these limits a company is classed as large.

The new above the line tax credit is optional and companies may, if they wish, continue to use the existing large company R&D regime until 31 March 2016. From 1 April 2016, the new above the line credit becomes mandatory.

For further details of the measure, please click here.


ACCA has produced a Guide To research and development tax reliefs for small, medium and large companies: please click here