Tax Reliefs That Work: Research & Development Tax Credits and the Patent Box regime

Save this PDF as:
Size: px
Start display at page:

Download "Tax Reliefs That Work: Research & Development Tax Credits and the Patent Box regime"

Transcription

1 Tax Reliefs That Work: Research & Development Tax Credits and the Patent Box regime

2 Encouraging UK innovation Introduction The Research and Development (R&D) tax relief scheme and the Patent Box are key parts of the Government s strategy to raise overall levels of R&D and to improve long term productivity growth rates in the UK. UK SMEs claim around 1billion of R&D relief each year from HMRC. R&D relief is a familiar part of the UK s corporation tax system and provides relief for eligible spend in different ways depending on the size of the business. The new Patent Box regime introduces an effective corporation tax rate of 10% on qualifying profits. Both reliefs are designed to work together to stimulate innovation and investment in the UK. No dilution of benefits occurs if both schemes apply. R&D relief What is R&D? R&D for tax purposes takes place when a project seeks to achieve an advance in science or technology, resulting in advancement in the industry s overall knowledge or capabilities (not pertaining to only one company). This includes adaptations from other fields of science or technology. Eligible costs include staff salaries, national insurance contributions and pension costs, testing costs, overheads, such as heat and light, and also some subcontracted costs. Level of relief Relief can be given as a deduction against profits, or if a business is loss making, this can take the form of a useful cash refund. For example: An SME, spending 100,000 of its own money on qualifying R&D, would be able to offset 225% of the cost against its profits. This results in a tax deduction of 225,000, saving additional tax of 25,000 A loss-making SME, spending 100,000 on eligible costs, would receive up to 32,625 as an R&D tax credit In the case of R&D relief, the term SME covers a large number of companies, including many that you might assume to be large businesses. If your company has fewer than 500 employees and either an annual turnover not exceeding Euros 100million or balance sheet not exceeding Euros 86million, it will qualify for a more beneficial SME regime. For large companies, relief is either given at 130% of qualifying revenue spend or at the (marginally better) above-the-line credit rate of 10%. Both schemes run concurrently until 2016, when the credit scheme becomes compulsory. If your company also incurs capital expenditure through an R&D project, you may also be able to claim R&D capital allowances. If your company receives any subsidy or grant for the R&D project that might be deemed State Aid by the European Commission, the project will only be ineligible under the SME scheme. Any other subsidy or grant is deducted from the eligible expenditure.

3 Review of accounting systems When it comes to making claims under R&D and Patent Box, it s essential that accounting information is gathered both for historic qualifying income and costs and future projects. To calculate the Patent Box super deduction all profits from patents and intellectual property (IP) need to be identified using very specific methods, so we may need to review and adjust your accounting systems. Review of income streams Relevant IP income falls under five main categories: 1. Income from the sale of items protected by qualifying IP rights. This includes the sale of larger products incorporating smaller patented items. 2. Income from a licence of a relevant IP right. This includes any licence fee or royalty income. 3. Income from the sale of a relevant IP right. 4. Damages received for the infringement of relevant IP. 5. Notional royalties included in rental income from patented products or products manufactured using a patented process. The calculation of notional royalties is an inexact science and may require negotiation with HMRC. We have been working with HMRC to explore how this will work in practice. Review of IP expenditure Although the legislation provides a simplified method for analysing costs, all relevant costs need to be carefully captured for new claimants so that we can apply the streaming method explained above. This helps us to identify the best way of calculating the super deduction. If the streaming method is more beneficial, the accounting systems can be configured to extract the relevant costs, and then the routine costs from which a notional return is calculated. The routine costs fall into 5 categories: Premises costs Personnel costs Plant and machinery costs Professional costs Other relevant costs: this includes costs for computing, telecommunication and postal services Finally, companies with valuable brands or marketing operations may have to calculate a marketing return figure. This figure strips out the income attributed to a brand, reducing the amount of profit that can be taxed at the beneficial Patent Box rate. We are working with HMRC to protect small and medium sized companies from the impact of this adjustment.

4 R&D and Patent Box tax reliefs: how they interact The following examples show how the Patent Box regime interacts with the large company R&D reliefs. Profit and loss accounts No Claim 000 Small Super Deduction Claim 000 Large Above The Line Tax Credit Claim 000 Large Turnover 2,300 2,300 2,300 R&D Expenses (2,000) (2,000) (2,000) Patent box profits 1,000 1,000 1,000 Profits before ATL credit 1,300 1,300 1,300 ATL Credit 200 Profit/(Loss) 1,300 1,300 1,500 Patent Box super deduction 0 (500) (500) R&D super deduction 0 (600) Taxable profits 1, ,000 Tax computations Corporation tax ATL Credit 0 0 (200) Tax payable Rate of corporate tax 20% 20% 20% Effective cash tax rate 20% 3.1% 0% Note: In addition to reducing the tax bill by over 260K in this example, the ATL tax credit is incorporated into reported profits. This is intended to boost the value of research companies.

5 Patent box Patent Box is a complex area of tax, so our expert team works closely with UK-based patent attorneys to offer our clients the right blend of legal and business knowledge. If you re unsure of any area and would like help to see how much your business could save, please get in touch. Saving tax on patents The UK Government established the Patent Box tax incentive scheme to help companies maximise profits on their patents by setting a low tax rate of 10%. We have worked with the HMRC Patent Box team to agree a practical approach to Patent Box calculations for SMEs. Our IP review process described in detail below helps you to gather the right information from day one. Our work on Patent Box tax relief is aligned to R&D reviews, but we also offer this service as a stand-alone project in which we work with your existing advisers. Review of Intellectual Property According to Patent Box rules, not all Intellectual Property will qualify for reduced tax rates, so it s important to review your IP portfolio to check whether there are: 1. Qualifying rights: Does existing intellectual property qualify under the regime and where patents have not been granted, can further applications be made? 2. Qualifying companies: Is your company eligible to claim this benefit? This is particularly relevant to groups of companies, for which special rules apply. It s important to note that, despite the name, the Patent Box regime doesn t just cover patents supplementary protection certificates, plan variety rights and data exclusivity rights can also qualify. You don t even need to own the qualifying intellectual property an exclusive licence may be sufficient. How we can help Our success is based on our approach: we take time to understand your R&D projects and your intellectual property, and we know how HMRC assesses claims. To make a valid claim, you must meet a complex range of conditions. The key issue is the nature of the R&D project and the project boundaries. Although not all activity which a company classes as R&D will meet the criteria for R&D tax relief, our first step will be to work with your development team to establish the scope of your project and decide how we can legitimately maximise your claim. Once we have identified the eligible projects, we will check whether your company qualifies as an SME for R&D tax purposes, consider the other detailed conditions for the claim and finally list the qualifying costs. Claims for R&D relief are handled by specialist R&D units within HMRC, and we deal with these specialist teams on a regular basis. We have also met with the Revenue s senior team responsible for administering R&D tax reliefs across the UK, during which we have raised issues and pushed for improvements in the way the relief is administered. We use this experience to ensure that our clients claims have the best possible chance of success.

6 How do I find out more? If you would like a free assessment of how your business can benefit from R&D tax credits or the Patent Box, please contact either Susie Walker, Head of Tax, or Caroline Muir, Deputy Head of Tax, or one of our specialists listed below. Contact us Susie Walker Head of Tax Caroline Muir Deputy Head of Tax

7 Our specialists David Dowell Aberdeen Callum Wilson Aberdeen Simon Burton Fiona Rigg Jennifer Brown Glasgow John McAuslin Glasgow Ian Lewis Inverness

8 Aberdeen Elgin Forfar Fraserburgh Glasgow Huntly Inverness Inverurie Perth Stirling jcca.co.uk Disclaimer: This update has been published for information purposes only. The contents of this document are not a substitute for tax, legal or professional advice. The law may have changed since this document was first published and Disclaimer: whilst all possible While care all possible has been care taken is taken in the in completion the completion of this of document, this document, readers no should responsibility seek tax advice for loss based occasioned upon by any their person own particular acting or circumstances. refraining from action as a result of the information contained herein can be accepted by this firm. Johnston Carmichael is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member or correspondent firm or firms.

Property Investment Buy-to-let Tax Advice

Property Investment Buy-to-let Tax Advice Property Investment Buy-to-let Tax Advice Investing in bricks and mortar Introduction In recent years, the stock market has had its ups and downs. Add to this the constant change in pension rules, and

More information

Capital Gains Tax and the Family Home

Capital Gains Tax and the Family Home Capital Gains Tax and the Family Home Selling your home In normal circumstances, when a person sells a property they need to pay Capital Gains Tax (CGT) on any profit they make. However, Private Residence

More information

VAT Initiatives That Work: Special Schemes for Small Businesses

VAT Initiatives That Work: Special Schemes for Small Businesses VAT Initiatives That Work: Special Schemes for Small Businesses Flat rate VAT accounting, cash accounting and annual accounting are schemes available to small businesses that can reduce VAT bills or lessen

More information

R&D Tax Relief. Helping businesses make the most of their R&D. investni.com

R&D Tax Relief. Helping businesses make the most of their R&D. investni.com R&D Tax Relief Helping businesses make the most of their R&D investni.com R&D Tax Relief 1. Overview of the benefits 2. Definitions: Is my company engaged in eligible activity? Am I small or large? 3.

More information

Tax Reliefs That Work: Charitable Giving

Tax Reliefs That Work: Charitable Giving Tax Reliefs That Work: Charitable Giving Supporting investment The gift that gives back Thinking of making a gift to charity? Not only will you be contributing to a good cause, but you can get tax relief

More information

Patent Box Tax Relief. Pay tax at just 10%

Patent Box Tax Relief. Pay tax at just 10% Patent Box Tax Relief Pay tax at just 10% WHAT IS PATENT BOX? Patent Box is the name for legislation introduced by the Government to encourage the retention of intellectual property and the valuable jobs

More information

Tax Relief & Incentives for Start-ups

Tax Relief & Incentives for Start-ups Tax Relief & Incentives for Start-ups London Tech Week 17 June 2015 Tax Relief & Incentives for Start-ups London Tech Week 17 June 2015 2 www.laytons.com Introduction The UK offers a highly favourable

More information

Briefing note. December 2013 RESEARCH AND DEVELOPMENT TAX RELIEF. Introduction

Briefing note. December 2013 RESEARCH AND DEVELOPMENT TAX RELIEF. Introduction Briefing note December 2013 RESEARCH AND DEVELOPMENT TAX RELIEF Introduction There has been much press comment in connection with the tax reliefs which are available to companies which incur expenditure

More information

Research and Development Tax Credits. Patent Box. Paul Bray Partner Smith & Williamson LLP. @SMEservices_S_W #SME

Research and Development Tax Credits. Patent Box. Paul Bray Partner Smith & Williamson LLP. @SMEservices_S_W #SME Research and Development Tax Credits Patent Box Paul Bray Partner Smith & Williamson LLP @SMEservices_S_W #SME Disclaimer This seminar is of a general nature and is not a substitute for professional advice.

More information

www.pwc.co.uk R&D tax relief May 2012

www.pwc.co.uk R&D tax relief May 2012 www.pwc.co.uk R&D tax relief May 2012 R&D tax reliefs over view of current schemes March 2012 Slide 2 R&D tax relief The UK government provides some significant tax incentives for companies undertaking

More information

Tax Reliefs for Research and Development Expenditure

Tax Reliefs for Research and Development Expenditure Tax Reliefs for Research and Development Expenditure Introduction Successive Governments have recognised that encouraging businesses to undertake Research and Development (R&D) activities in the UK is

More information

Sometimes projects fully develop

Sometimes projects fully develop e: info@linkstep.co.uk t: 0844 656 1696 Budget Announcement & R&D Tax 2013 March 2013 LinkStep R&D Tax Services Sometimes projects fully develop.others never quite fully hatch. Surprisingly, companies

More information

4. Financial assistance for investors: Grants and incentives

4. Financial assistance for investors: Grants and incentives 4. Financial assistance for investors: Grants and incentives An introduction from the UK Department for Business, Enterprise and Regulatory Reform There is growing interest from international companies

More information

ALLOWANCES FOR RESEARCH AND DEVELOPMENT

ALLOWANCES FOR RESEARCH AND DEVELOPMENT ALLOWANCES FOR RESEARCH AND DEVELOPMENT This fact sheet covers various tax reliefs that are available in respect of revenue expenditure on research and development (R&D) incurred by small and medium sized

More information

R&D Tax Relief. Subsea UK Technical Session. 27 April 2011

R&D Tax Relief. Subsea UK Technical Session. 27 April 2011 R&D Tax Relief Subsea UK Technical Session 27 April 2011 Content Overview of R&D relief 3 SME definition 9 Conditions for claiming relief 13 Qualifying Expenditure 17 Definition of R&D for tax purposes

More information

A guide to Creative Sector Tax Reliefs

A guide to Creative Sector Tax Reliefs A guide to Creative Sector Tax Reliefs Research and Development Tax Relief High-end Television & Animation Production Tax Relief Video Games Tax Relief 1 Introduction The creative industries ranging from

More information

Tax Treatment of Research and Development Expenditure

Tax Treatment of Research and Development Expenditure Tax Treatment of Research and Development Expenditure Summer 2013 Introduction Successive Governments have recognised that encouraging businesses to undertake Research and Development (R&D) activities

More information

Tech Toolkit. Research & Development in the technology sphere

Tech Toolkit. Research & Development in the technology sphere Tech Toolkit Research & Development in the technology sphere A summary of the UK R&D tax credit scheme The UK s R&D tax credit regime is one of the most attractive in the world. There is now evidence of

More information

The Patent Box. Background to the Patent Box regime

The Patent Box. Background to the Patent Box regime The Patent Box Background to the Patent Box regime The UK Government has been keen to improve the UK s competitiveness in the high-tech arena. Companies have been able to elect to enter the Patent Box

More information

PATENT BOX HOW TO MAXIMISE THE BENEFITS

PATENT BOX HOW TO MAXIMISE THE BENEFITS PATENT BOX HOW TO MAXIMISE THE BENEFITS On 1 April 2013 the government introduced a low tax regime applicable to a company s profits, derived from the commercial exploitation of inventions protected by

More information

Tax issues and brief practical tips 2013 for Tech or R&D startups

Tax issues and brief practical tips 2013 for Tech or R&D startups Tax issues and brief practical tips 2013 for Tech or R&D startups Tax issues and brief practical tips 2013 for Tech or R&D startups Contents Section 1) Tax issues R&D Tax Credits 2 SEIS 3 EMI Share Options

More information

Research and Development Tax Credits. Turning innovative ideas into cash

Research and Development Tax Credits. Turning innovative ideas into cash Research and Development Tax Credits Turning innovative ideas into cash 2 INTRODUCTION Research & Development (R&D) tax reliefs were introduced to incentivise companies to innovate using the tax system.

More information

Legal Aspects. Tax Relief for Innovative Businesses Andrew Wilson and Michelle Andrews

Legal Aspects. Tax Relief for Innovative Businesses Andrew Wilson and Michelle Andrews Tax Relief for Innovative Businesses Andrew Wilson and Michelle Andrews Biography Andrew is a Chartered Accountant and Chartered Tax Adviser and leads Magma s Corporate Tax team. He has extensive experience

More information

Europe s tax minefield: Philip Gillett urges cooperation

Europe s tax minefield: Philip Gillett urges cooperation www.internationaltaxreview.com May 2004 A Euromoney publication Europe s tax minefield: Philip Gillett urges cooperation What media owners want from the tax man Beneficial ownership explained Germany publishes

More information

Let CCH Consultancy unlock the tax relief in your Research & Development

Let CCH Consultancy unlock the tax relief in your Research & Development Let CCH Consultancy unlock the tax relief in your Research & Development CCH Consultancy How can we help you? Not everyone has the luxury of their own consultancy division on tap, but you do. When you

More information

Tax relief on buildings. The Grant Thornton capital allowances service

Tax relief on buildings. The Grant Thornton capital allowances service Tax relief on buildings The Grant Thornton capital allowances service 5 Background to capital allowances Capital allowances are a statutory right to tax relief. As well as the more widely understood items

More information

The Enhanced Capital Allowance scheme for energy-saving technologies. A guide to equipment eligible for Enhanced Capital Allowances

The Enhanced Capital Allowance scheme for energy-saving technologies. A guide to equipment eligible for Enhanced Capital Allowances The Enhanced Capital Allowance scheme for energy-saving technologies A guide to equipment eligible for Enhanced Capital Allowances 2 Contents Boost your cash flow 03 1. Check it s on the Energy Technology

More information

Guide to Running a Limited Company

Guide to Running a Limited Company clear thinking, positive solutions Guide to Running a Limited Company www.rdpnewmans.com Contents Company Foundations 01 Companies House Registration 01 Company Officers 01 Shareholdings 01 Bank Accounts

More information

21 Tax Saving Tips Tax & Accounts www.hfmtax.co.uk

21 Tax Saving Tips Tax & Accounts www.hfmtax.co.uk 21 Tax Saving Tips Tax & Accounts www.hfmtax.co.uk Everyone wants to save tax and, although there are complex tax savings schemes available, some tax savings are simple. You just need to take some care

More information

Tax Incentives in the Gaming Industry

Tax Incentives in the Gaming Industry Tax Incentives in the Gaming Industry Garry Tetley 6 September 2012 Overview of UK Tax Regime for Dynamic Creative Companies Favourable and improving R&D credits, Patent Box, Creative Industries Relief

More information

Bob Berry Boots Professor of Accounting & Finance Nottingham University Business School & Chris Bond Tax Partner BDO Nottingham

Bob Berry Boots Professor of Accounting & Finance Nottingham University Business School & Chris Bond Tax Partner BDO Nottingham Bob Berry Boots Professor of Accounting & Finance Nottingham University Business School & Chris Bond Tax Partner BDO Nottingham Today s agenda. Some basic finance ideas. Accounting profit and taxable profit.

More information

Our favourite places

Our favourite places Our favourite places Free business information for start-up companies and growing businesses 2 About Crowe Clark Whitehill We are a leading national audit, tax and advisory firm. We have particular interest

More information

The R&D tax credit regime. 18 February 2014

The R&D tax credit regime. 18 February 2014 The R&D tax credit regime 18 February 2014 Agenda Page 1 The R&D Incentive in the current environment Overview of the R&D regime The science test The accounting test Overview of documentation requirements

More information

Review of R&D Tax Credit. Invitation for Submissions

Review of R&D Tax Credit. Invitation for Submissions Review of R&D Credit invitation for submissions Review of R&D Credit Invitation for Submissions February 2013 Economic and Fiscal Divisions Department of Finance Government Buildings, Upper Merrion Street,

More information

Making R&D Easier HMRC s plan for small business R&D tax relief. October 2015

Making R&D Easier HMRC s plan for small business R&D tax relief. October 2015 Making R&D Easier HMRC s plan for small business R&D tax relief October 2015 Contents 1 Introduction 4 2 Awareness 6 3 Design 8 4 Understanding 10 5 Administration 12 6 Next steps 14 2 Foreword Research

More information

Tax Planning in an Economic Downturn

Tax Planning in an Economic Downturn 38 Moneen, Castlebar, Co. Mayo Tel: 094 9044786 Fax: 094 9044772 E-mail: info@donnellytax.com Website: www.donnellytax.com Tax Relief for Losses Tax Planning in an Economic Downturn In the current economic

More information

Research and Development (R&D) Relief for Corporation Tax

Research and Development (R&D) Relief for Corporation Tax Page 1 of 9 Research and Development (R&D) Relief for Corporation Tax Research and Development (R&D) Relief is a Corporation Tax relief that may reduce your company or organisation's tax bill by more than

More information

PAPER IIA UNITED KINGDOM OPTION

PAPER IIA UNITED KINGDOM OPTION THE ADVANCED DIPLOMA IN INTERNATIONAL TAXATION June 2008 PAPER IIA UNITED KINGDOM OPTION ADVANCED INTERNATIONAL TAXATION TIME ALLOWED 3¼ HOURS You should answer FOUR out of the seven questions. Each question

More information

TURNAROUND OF SMALL AND MEDIUM SIZED ENTERPRISES

TURNAROUND OF SMALL AND MEDIUM SIZED ENTERPRISES TURNAROUND OF SMALL AND MEDIUM SIZED ENTERPRISES Definition of a Small and Medium Sized Enterprise (SME) Turnover Not more than Balance Sheet Not more than Employees Not more than Small 6.5 million 3.26

More information

Employee and Business Angel Shareholdings. Avoiding Income Tax Issues

Employee and Business Angel Shareholdings. Avoiding Income Tax Issues Employee and Business Angel Shareholdings Avoiding Income Tax Issues Employee and Business Angel Shareholdings Introduction Private companies, particularly those in a start-up or early stage development

More information

TAX RELIEFS AND CREDITS FOR RESEARCH AND DEVELOPMENT

TAX RELIEFS AND CREDITS FOR RESEARCH AND DEVELOPMENT TAX RELIEFS AND CREDITS FOR RESEARCH AND DEVELOPMENT SPECIAL REPORT BY WASHINGTON D.C. - 21 SEPTEMBER 2011 PKF International is a contributor to the Commonwealth Finance Ministers Reference Report 2011,

More information

FOREWORD. Namibia. Services provided by member firms include:

FOREWORD. Namibia. Services provided by member firms include: FOREWORD A country's tax regime is always a key factor for any business considering moving into new markets. What is the corporate tax rate? Are there any incentives for overseas businesses? Are there

More information

Limited Company Guide - 1 -

Limited Company Guide - 1 - Limited Company Guide - 1 - Congratulations on your new company. If you are new contracting, you may feel overwhelmed with your new responsibilities as the company director. This guide is designed to give

More information

ECA272. The Enhanced Capital Allowance scheme for energy-saving technologies

ECA272. The Enhanced Capital Allowance scheme for energy-saving technologies ECA272 The Enhanced Capital Allowance scheme for energy-saving technologies The Enhanced Capital Allowance scheme Boost your cash flow Enhanced Capital Allowances (ECAs) are a straightforward way for a

More information

Corporation tax: research and development tax credits: consumables

Corporation tax: research and development tax credits: consumables Corporation tax: research and development tax credits: consumables Who is likely to be affected? Companies carrying out research and development (R&D) activities. General description of the measure The

More information

YEAR END TAX GUIDE & PENSION FREEDOMS 2014/15

YEAR END TAX GUIDE & PENSION FREEDOMS 2014/15 YEAR END TAX PLANNING GUIDE & PENSION FREEDOMS 2014/15 Welcome Our year end guide summarises some key tax and financial planning tips which should be considered prior to the end of the tax year on 5 April

More information

Overseas aspects of corporation tax may be examined as part of question two, or it could be examined in questions four or five.

Overseas aspects of corporation tax may be examined as part of question two, or it could be examined in questions four or five. RELEVANT TO ACCA QUALIFICATION PAPER F6 (UK) Overseas aspects of corporation tax This article is relevant to candidates taking Paper F6 (UK) in either June or December 2013, and is based on tax legislation

More information

R&D Tax Incentive. Research Service Providers. Linking business with research

R&D Tax Incentive. Research Service Providers. Linking business with research R&D Tax Incentive Research Service Providers Linking business with research 1 Contents What are Research Service Providers (RSPs)? 3 The R&D Tax Incentive 4 Why do R&D? And how? 6 RSPs the benefits 7 How

More information

R&D Tax Relief Overview

R&D Tax Relief Overview R&D Tax Relief Overview In partnership A member of the Experience Group with R&D Tax Relief Schemes Capital Expenditure R&D Allowances 100% in year of expenditure Undertake activities qualifying as R&D

More information

RETIREMENT ANNUITY TRUST SCHEMES (RATS)

RETIREMENT ANNUITY TRUST SCHEMES (RATS) FACT SHEET RETIREMENT ANNUITY TRUST SCHEMES (RATS) With only a limited number of retirement annuity contracts (RAC) and personal pension schemes (PPS) available in Guernsey, the popularity of RATS is growing

More information

KEY GUIDE. Setting up a new business

KEY GUIDE. Setting up a new business KEY GUIDE Setting up a new business The business idea You have a business idea, but can you turn it into a viable enterprise? Is there a market for the goods you will produce or the services you will supply?

More information

End of Year Tax Planning. March 2015

End of Year Tax Planning. March 2015 End of Year Tax Planning March 2015 For the individual Income Tax The starting point in tax planning is to understand where your income is likely to fall relative to the tax thresholds. For 2014/15, the

More information

Operating Guide For Contractors

Operating Guide For Contractors Operating Guide For Contractors 30 New Road Brighton BN1 1BN Tel: (01273) 324163 Fax: (01273) 323983 Email: rogerm@hsc.uk.net Website: www.hsc.uk.net Operating Guide for Contractors Introduction This guide

More information

Research & Development Tax Credit Guidelines

Research & Development Tax Credit Guidelines Research & Development Tax Credit Guidelines These Guidelines should be read in conjunction with Section 766, Section 766A and Section 766B of the Taxes Consolidation Act 1997 This document is not a legal

More information

CIOT Examination: Advisory Advanced Corporation Tax

CIOT Examination: Advisory Advanced Corporation Tax CIOT Examination: Advisory Advanced Corporation Tax QUESTION 1: Note Prepared by: Tax Manager Subject: Group Relief This file note sets out the position on the availability of group relief from the Albinoni

More information

Tax Points Update Issue 1/2013. RTI Changes and Budget 2013. PAYE in Real Time (RTI)

Tax Points Update Issue 1/2013. RTI Changes and Budget 2013. PAYE in Real Time (RTI) Tax Points Update Issue 1/2013 RTI Changes and Budget 2013 PAYE in Real Time (RTI) On April 6 th 2013 the way PAYE is reported to HMRC will change. Unless HMRC has notified you otherwise, you must be compliant

More information

Knowledge Development Box. Feedback Statement July 2015

Knowledge Development Box. Feedback Statement July 2015 Knowledge Development Box Feedback Statement July 2015 Knowledge Development Box Feedback Statement Department of Finance 30 July 2015 Department of Finance Government Buildings, Upper Merrion Street,

More information

LEGISLATION UPDATE THE LIFETIME ALLOWANCE, FIXED PROTECTION 2014 AND METLIFE REGISTERED GROUP LIFE POLICIES

LEGISLATION UPDATE THE LIFETIME ALLOWANCE, FIXED PROTECTION 2014 AND METLIFE REGISTERED GROUP LIFE POLICIES FOR INTERMEDIARY USE ONLY FEBRUARY 2014 LEGISLATION UPDATE THE LIFETIME ALLOWANCE, FIXED PROTECTION 2014 AND METLIFE REGISTERED GROUP LIFE POLICIES This update is a summary of MetLife s interpretation

More information

www.taitwalker.co.uk ESSENTIAL END OF TAX YEAR PLANNING GUIDE 2013/14

www.taitwalker.co.uk ESSENTIAL END OF TAX YEAR PLANNING GUIDE 2013/14 www.taitwalker.co.uk ESSENTIAL END OF TAX YEAR PLANNING GUIDE 2013/14 Welcome 2013 was a landmark year for tax planning. After many years of deliberation, the Government introduced a new General Anti Abuse

More information

Pension tax relief Factsheet

Pension tax relief Factsheet Pension tax relief Factsheet This factsheet provides a summary of the rules in relation to pension tax relief, including recently introduced changes and information on proposals for further changes during

More information

TAX TABLES 2010/11. INCOME TAX 2010/11 2009/10 Rates

TAX TABLES 2010/11. INCOME TAX 2010/11 2009/10 Rates TAX TABLES 2010/11 INCOME TAX 2010/11 2009/10 Rates % % Starting rate for savings income only 10 10 Basic rate for all income 20 20 Higher rate for non-savings and savings income only 40 40 Higher rate

More information

Setting up your Business in France Issues to consider

Setting up your Business in France Issues to consider Around 20,000 foreign companies are already established, running businesses under many different legal forms. The reforms that France has pursued to improve competitiveness and the business environment

More information

Ensuring that goods or services are sold in a later accounting period.

Ensuring that goods or services are sold in a later accounting period. Introduction The approach of a company s year end is an important time to look at opportunities to save tax. A number of tax-saving actions have to be taken by that date, otherwise the opportunity could

More information

Paper P2 (UK) Corporate Reporting (United Kingdom) Tuesday 11 December 2007. Professional Level Essentials Module

Paper P2 (UK) Corporate Reporting (United Kingdom) Tuesday 11 December 2007. Professional Level Essentials Module Professional Level Essentials Module Corporate Reporting (United Kingdom) Tuesday 11 December 2007 Time allowed Reading and planning: Writing: 15 minutes 3 hours This paper is divided into two sections:

More information

DOING BUSINESS IN AUSTRALIA. Presented by Sean Urquhart Tax Partner at Nexia Australia T: 61 2 9251 4600 E: surquhart@nexiacourt.com.

DOING BUSINESS IN AUSTRALIA. Presented by Sean Urquhart Tax Partner at Nexia Australia T: 61 2 9251 4600 E: surquhart@nexiacourt.com. DOING BUSINESS IN AUSTRALIA Presented by Sean Urquhart Tax Partner at Nexia Australia T: 61 2 9251 4600 E: surquhart@nexiacourt.com.au DISCLAIMER The material contained in this publication is in the nature

More information

BUY TO LET TAX GUIDE

BUY TO LET TAX GUIDE BUY TO LET TAX GUIDE Expert advice FROM START TO FINISH WE RE THE UK S LEADING FEE FREE MORTGAGE BROKER Contents p3 p4 p7 p8 Do you pay stamp duty tax on a buy to let property? Do you pay Capital Gains

More information

CONTRIBUTIONS EXPLAINED

CONTRIBUTIONS EXPLAINED FUJITSU UK PENSION PLAN SECTION A STANDARD TERMS CONTRIBUTIONS EXPLAINED You re in good company WHEN IT COMES TO YOUR RETIREMENT PLANNING... you re in good company Being part of your company pension plan

More information

Potential saving ( 286,000 221,040) 64,960

Potential saving ( 286,000 221,040) 64,960 Answers Professional Level Options Module, Paper P6 (UK) Advanced Taxation (United Kingdom) June 2012 Answers 1 Una (a) To The files From Tax senior Date 15 June 2012 Subject Una Gifts to son and granddaughter

More information

Pensions - Tax Reliefs

Pensions - Tax Reliefs Pensions - Tax Reliefs Types of pension schemes There are two broad types of pension schemes from which an individual may eventually be in receipt of a pension: Occupational schemes Personal Pension schemes.

More information

Pensions Tax Reliefs

Pensions Tax Reliefs Our Vision Pensions Tax Reliefs To become the Best Provider of Solutions for Businesses in Coventry & Warwickshire Types of pension schemes There are two broad types of pension schemes from which an individual

More information

The end of the financial year is coming! June 2013. Are there any bad debts to write off out of your receivables?

The end of the financial year is coming! June 2013. Are there any bad debts to write off out of your receivables? GR GURNEY CA JJPECZKA CA G L LAPSLEY CA NK FARRELL CA CHARTEREDACCOUNTANTS June 2013 IN THIS ISSUE The end of the financial year is coming! Small business tax concessions and scrip for scrip roll-over

More information

An Alternative for Extending Refundability of SR&ED Tax Credits

An Alternative for Extending Refundability of SR&ED Tax Credits An Alternative for Extending Refundability of SR&ED Tax Credits Prepared by: Karen Wensley and Jacek Warda January 2007 The Information Technology Association of Canada (ITAC) is the voice of the Canadian

More information

Tax efficient Income Protection for the small business.

Tax efficient Income Protection for the small business. Tax efficient Income Protection for the small business. Sub-heading in here This communication is aimed and directed at professional financial advisers only. It must not be distributed to, or relied upon

More information

Healthcare Trusts: A Technical Guide

Healthcare Trusts: A Technical Guide Healthcare Trusts: A Technical Guide Introduction Traditionally employers have provided healthcare benefits to employees through private medical insurance schemes. The employer pays a premium to an insurer

More information

Global Tax and Legal April 2015. Grants & Incentives program updates The latest legislative developments from around the world

Global Tax and Legal April 2015. Grants & Incentives program updates The latest legislative developments from around the world Global Tax and Legal April 2015 Grants & Incentives program updates The latest legislative developments from around the world Countries included This update provides a summary of the latest developments

More information

The Expatriate Financial Guide to

The Expatriate Financial Guide to The Expatriate Financial Guide to Australian Tax Facts Australia Introduction Tax Year Assessment Basis Income Tax Taxation in Australia is mostly at a national/federal level with property taxes (council

More information

2015 YEAR END TAX & SUPERANNUATION PLANNING GUIDE

2015 YEAR END TAX & SUPERANNUATION PLANNING GUIDE 2015 YEAR END TAX & SUPERANNUATION PLANNING GUIDE We are pleased to provide our year end tax planning guide for 2015. Tax Planning should be done on a regular basis throughout the year. However, these

More information

Superannuation What you can do before & after 30 June 2014. SuperStream

Superannuation What you can do before & after 30 June 2014. SuperStream NEWS Winter 2014 P (03) 9585 1988 F (03) 9585 1437 E info@griffithsacc.com W griffithsacc.com Page 2 Federal Budget Emerging tax & superannuation issues Page 3 Superannuation What you can do before & after

More information

Paper P6 (UK) Advanced Taxation (United Kingdom) Friday 5 December 2014. Professional Level Options Module

Paper P6 (UK) Advanced Taxation (United Kingdom) Friday 5 December 2014. Professional Level Options Module Professional Level Options Module Advanced Taxation (United Kingdom) Friday 5 December 2014 Time allowed Reading and planning: Writing: 15 minutes 3 hours This paper is divided into two sections: Section

More information

Employment status: employee in terms of employment law. generally taxed as employees. Tax on profits:

Employment status: employee in terms of employment law. generally taxed as employees. Tax on profits: Sole trader Vs Limited company The comparison is for a trading business. Many of the points summarised here are not relevant if you want to compare individuals or companies that manage investment business.

More information

TAX SEMINAR. The New Cash Basis Explained. 2 December 2013

TAX SEMINAR. The New Cash Basis Explained. 2 December 2013 TAX SEMINAR The New Cash Basis Explained 2 December 2013 1 THE OLD CASH BASIS The old cash basis is a special basis of accounting available to self-employed barristers during their first seven years of

More information

Limit on Income Tax reliefs

Limit on Income Tax reliefs Helpsheet 204 Tax year 6 April 2013 to 5 April 2014 Limit on Income Tax reliefs A Contacts Please phone: the number printed on page TR 1 of your tax return the SA Helpline on 0300 200 3310 the SA Orderline

More information

Self-employment and Universal Credit

Self-employment and Universal Credit Self-employment and Universal Credit A detailed guide for advisers December 2013 1 Self-employment and Universal Credit A guide for advisers Section 1 - What counts as self-employment for UC? Section 2

More information

Corporation Tax Computation 7 Steps Working Solution by Paul McDevitt, FCCA, F2 Examiner, July 2013.

Corporation Tax Computation 7 Steps Working Solution by Paul McDevitt, FCCA, F2 Examiner, July 2013. Corporation Tax Computation 7 Steps Working Solution by Paul McDevitt, FCCA, F2 Examiner, July 2013. Some students have difficulty in knowing how to deal with addbacks in a corporation tax question. This

More information

Applicant Guidance Notes - Flexible Business Support Grants

Applicant Guidance Notes - Flexible Business Support Grants Applicant Guidance Notes - Flexible Business Support Grants Introduction Gloucester City Council is actively encouraging a thriving local economy and, as a part of this, is looking to support new business

More information

Buying and selling an unincorporated business

Buying and selling an unincorporated business Introduction This section covers the main tax issues that arise when buying or selling a business owned by a sole trader, a partnership or a company. The tax consequences differ, depending on whether the

More information

Integrating the operation of income tax and National Insurance contributions. A call for evidence

Integrating the operation of income tax and National Insurance contributions. A call for evidence Integrating the operation of income tax and National Insurance contributions A call for evidence July 2011 Integrating the operation of income tax and National Insurance contributions A call for evidence

More information

guide to pension tax relief.

guide to pension tax relief. guide to pension tax relief. introduction tax benefits of pensions tax relief maximum contributions how to make a pension contribution what next? introduction tax benefits of pensions tax relief maximum

More information

The Complete Guide To Claiming Capital Allowances

The Complete Guide To Claiming Capital Allowances The Complete Guide To Claiming Capital Allowances www.lmemove.com Is This Guide For You? There are a few simple questions that we will ask you right at the start of this guide to ensure that it is applicable

More information

Information about enhanced expenditure

Information about enhanced expenditure Indicators and information 620 Franked investment income 625 Number of 51% group companies Put an X in the relevant boxes, if in the period, the company: 630 should have made (whether it has or not) instalment

More information

Technical Employment Status Guidance

Technical Employment Status Guidance Technical Employment Status Guidance Tax, National Insurance and Superannuation implications for GPs involved in Clinical Commissioning Group roles It is important to establish the correct employment status

More information

Government Giveaways. Or how to increase the government deficit through good tax planning. Geoff Hill, Tax Manager (geoff.hill@wardgoodman.co.

Government Giveaways. Or how to increase the government deficit through good tax planning. Geoff Hill, Tax Manager (geoff.hill@wardgoodman.co. Government Giveaways Or how to increase the government deficit through good tax planning Geoff Hill, Tax Manager (geoff.hill@wardgoodman.co.uk) Today s topics Research and development tax credits and relief

More information

What is a tax (financial) advice service?

What is a tax (financial) advice service? What is a tax (financial) advice service? March 2014 If you provide personal advice you are likely to provide your client with advice which interprets and applies the tax laws, even though this may not

More information

Overview of the Scientific Research and Experimental Development (SR&ED) Tax Incentive Program

Overview of the Scientific Research and Experimental Development (SR&ED) Tax Incentive Program Support for your R&D in Canada Overview of the Scientific Research and Experimental Development (SR&ED) ax Incentive Program RC4472 Photo: National Research Council Canada La version française de cette

More information

SSI Task Force Supply Chain & Growth Company Support Fund

SSI Task Force Supply Chain & Growth Company Support Fund SSI Task Force Supply Chain & Growth Company Support Fund 1) SSI Supply Chain Support Scheme The fund aims to support supply chain companies affected by the closure of the SSI UK steelworks. The scheme

More information

Inheritance Tax Avoidance - Pre-Owned Assets

Inheritance Tax Avoidance - Pre-Owned Assets Inheritance Tax Avoidance - Pre-Owned Assets Inheritance tax (IHT) was introduced over 25 years ago and broadly charges to tax certain lifetime gifts of capital and estates on death. With IHT came the

More information

Trust and Estate Tax Calculation Guide For the year ended 5 April 2016 (2015 16)

Trust and Estate Tax Calculation Guide For the year ended 5 April 2016 (2015 16) Trust and Estate Tax Calculation Guide For the year ended 5 April 2016 (2015 16) SA951 How to calculate the trust s or estate's tax Use this guide to work out the trust's or estate's tax and to check any

More information

Buy-to-let guide about tax

Buy-to-let guide about tax Perrys Chartered Accountants Buy-to-let guide about tax Introduction As a buy-to-let landlord it is important you know about tax and how it affects you and your investment. This is why Perrys Chartered

More information

The Enhanced Capital Allowance Scheme for energy saving plant and machinery

The Enhanced Capital Allowance Scheme for energy saving plant and machinery CIBSE Briefing The Enhanced Capital Allowance Scheme for energy saving plant and machinery An cash incentive for your clients to invest in energy and tax efficiency What are Capital Allowances? Capital

More information

Intellectual Property Rights (IP-Box) in Luxembourg

Intellectual Property Rights (IP-Box) in Luxembourg Intellectual Property Rights (IP-Box) in Luxembourg I. Intellectual Property-Box (IP-Box) in Luxembourg II. Intellectual property rights (IP) in Luxembourg III. Company for Intellectual Property Rights

More information