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