As announced at Spring Budget 2023, the government will legislate in a Finance Bill 2023-24 to provide additional R&D tax relief for eligible R&D intensive SMEs. A new credit rate will be available to loss-making companies whose R&D expenditure constitutes at least 40% of total expenditure. Qualifying companies will be able to claim a payable credit rate of 14.5% for qualifying R&D expenditure instead of the 10% credit rate for companies claiming support under the existing R&D SME scheme. The changes will take effect from 1 April 2023, with eligible companies able to claim once legislation is in place.
NAZALI TAX & LEGAL