Research & Development

“Stat’s Entertainment!” : Creative Industry Tax Relief

HMRC released the latest statistics on the number of productions made in the UK claiming tax relief and the amounts of UK and total expenditure for Film, High-end TV (“HETV”), Animation, Video Games, Children’s TV and Theatre tax relief for the years up to 2016-17. Film Tax Relief • There were 175 films completed in the UK in 2016-17 which claimed FTR, with UK expenditure reaching the £1b mark. Of this, £415m of tax relief was paid back to production companies. HETV Tax Relief • There ... Read More

Missing something?

Bigger and better Despite initial concerns that Research and Development Tax Reliefs might only survive as long as the Labour government which introduced them, the Conservatives and Liberal Democrats have continued to make the regime even more generous. What should companies take from this, and how can they improve the benefit they receive? The benefit As of 1 April 2014, the R&D Tax Credit for loss making SME companies has increased by 8%, to just over 33% of the qualifying R&D expenditure incurred. In ... Read More

Patent Box

Where are we after the Autumn Statement? With newspaper headlines variously describing Patent Box as dead, alive or in a state of limbo between this world and the next, technology-based businesses may have been scouring this weeks Autumn Statement for some official pronouncement on its fate. Certainly the plot has taken various twists and turns in recent months but, whilst the Chancellor omitted any mention of Patent Box in his Autumn Statement, there was an important development this week which ... Read More

Improvements to the UK’s R&D Tax Relief regime

Several improvements to the UK's R&D Tax Relief regime were announced in yesterday's Autumn Statement. The first of these is a relatively minor improvement for SMEs, with the rate of enhanced deduction increasing from 225% to 230% from 1 April 2015. However, in addition to this change, measures will be introduced to make the R&D claim application process easier for smaller companies. Further details are yet to be announced but this will be a welcome change for many businesses. A more significant increase ... Read More

Patent Box Changes – don’t miss out!

Launched with much fanfare in 2013, Patent Box is a flagship Government policy to promote innovation in the UK economy. Patent Box permits eligible companies to reduce their headline corporation tax rate on worldwide profits derived from patents to 10%. Following its launch, the policy ran into choppy international waters and criticism from foreign governments created uncertainty over the future of Patent Box, which has put many otherwise qualifying companies off from ... Read More

Thinking inside the Patent Box?

A tax policy for innovation Research and development involves significant risk and cost and even a successful technical outcome does not always guarantee success in the market place. Despite this, innovation is vital for the competitiveness of the UK economy in a global market place. How should a tax system treat these issues to incentivise growth? By creating the R&D tax credits and Patent Box regimes, the UK Government clearly believes in using the tax system as a powerful policy tool to promote ... Read More