Leyton Ireland - R&D Tax Credit - Finance Act 2008

R&D Tax Credit - Finance Act 2008 – Buildings

12/05/2008

R&D Tax Credit - Finance Act 2008 – Buildings

Buildings used for R&D must not be sold within 3 years instead of 10 years. The base year will remain 2003 up to 1 January 2014.

In addition to the existing provisions in relation to R&D undertaken by universities, expenditure incurred in regards to accounting periods ending on or after 1 January 2007 on sub-contracting R&D to unconnected parties will qualify up to a limit of 10% of qualifying R&D incurred by the company in any one year. To the condition that this subcontracted company does not claim a R&D tax credit for itself in respect of the expenditure. The subcontracted party must undertake the R&D work within the EEA. Finance Act 2007 Part I Chapter 4 Section 46.

The Finance Act 2008 amended the definition of the threshold amount so that 2003 will continue to be the base year for expenditure incurred by a company in carrying on R&D activities up to the end of 2013. This means for periods commencing on or after 1 January 2004 and ending before 1 January 2014, the base amount is the R&D expenditure incurred in a corresponding period ending in 2003.

All the latest news Previous | Next