June Budget – Research and Development Tax Relief
One of the conditions necessary for small and medium sized companies to claim tax relief for expenditure on research and development (R&D) is to be removed.
The change removes the condition for small and medium sized enterprises requiring that any intellectual property deriving from the R&D expenditure be owned by the company making the claim.
The change, which was originally announced in last year’s pre-budget report, will have effect for expenditure on R&D in accounting periods beginning on or after 9 December 2009.
The necessary legislation will be included in the Finance Bill to be introduced following the summer recess.