Technology Tax Relief

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Technology Tax Relief is the generic name for the programme of tax incentives implemented in the UK to incentivise companies to invest in high-value-add R&D and IP commercialisation.

Contents

History

The new approach began in 2000 with the launch of the R&D Tax Credit for small and medium enterprises. [1]

Overview

Technology Tax Relief now encompasses the following main tax reliefs:

Research and Development (R&D) Tax Credits are a UK tax incentive designed to encourage companies to invest in R&D. Companies can reduce their tax bill or claim payable cash credits as a proportion of their R&D expenditure.

Research and Development Capital Allowances, also known as RDAs, are a tax relief for businesses in the United Kingdom. They provide a 100 per cent first year capital allowance for research and development (R&D) capital expenditure. RDAs are the capital expenditure equivalent to the R&D tax relief scheme.

The Research and Development Expenditure Credit (RDEC), introduced in 2013, is a UK tax incentive designed to encourage large companies to invest in R&D in the UK. Companies can reduce their tax bill or claim payable cash credits as a proportion of their R&D expenditure.

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References

  1. "Finance Act 2000" Archived 17 November 2012 at the Wayback Machine . Retrieved 28 May 2013

See also

Creative Sector Tax Relief is a programme of tax incentives implemented in the United Kingdom in 2012 which encompass new incentives aimed at supporting the animation, high-end television and video games industries, in addition to the existing relief available for film production. The new reliefs are designed to promote culturally-relevant productions in the UK, to incentivise investment into UK productions that would otherwise take place outside the UK, and to support the necessary critical mass of infrastructure and skills in the UK for both today and in the longer term.