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Research and development tax reliefs: draft guidance

printer Mail

HMRC have published draft, updated guidance, together with minutes of the 4 April meeting of the Research & Development Consultative Committee.

Comments on the highlighted sections of the draft guidance are invited by 30 June.

The minutes include a note of the main themes identified in response to the recent consultation on the effectiveness of R&D tax reliefs.

Budget 2011 announced an increase in the SME rate of R&D tax credit to 200% from April 2011, and 225% from April 2012, subject to state aid approval.

A response document, and further consultation on the detail of proposed changes to R&D tax reliefs are expected this month. Draft legislation is planned for the autumn.

The government confirmed in a Commons written answer on 16 May that it has approached the European Commission regarding state aid approval for the Budget 2011 proposals in relation to R&D tax credits for SMEs; the enterprise investment scheme; venture capital trusts; and the climate change levy.