This Content Was Last Updated on January 9, 2016 by Jessica Garbett
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