Carousel_Arrow Chat icon_cookie IHT_trust_wills IR35 Combined Shape 2 Group 10 Login Mobile Menu Share Share Email SubMenuMobile Group 9 VAT View_Gallery View_List capital_allow Triangle 2 Copy Close construction cyberpro employment_tax_shares emplyer_solutions entrepreneurs_corps fee_protect Group 7 grant_fund Group i_Clock i_Consult i_Done i_Eligibility_Tick i_Enter i_Filter i_HMRC i_Negative i_Play i_Plus i_Reset i_Support_Legal i_Support_TaxDesk i_Support_VAT i_Tick noun_marketing_1872083 noun_online_2126759 i_download i_meet Group Copy 24 Group 18 noun_electrical_1240755 copy noun_Technology_2125422 noun_Science_2031115 i_tick_bullet_block international_tax patent_box private_client property_sdlt r_and_d reliefs_incentives Search specialist_tax status tax_indemnity valuation YouTube
Markel Tax

22 Nov 2017

Autumn Budget 2017: Increase in RDEC Rate for R&D companies

The Research and Development Expenditure Credit (RDEC) is a standalone credit that is brought into account as a receipt in calculating profits. RDEC was first introduced on 1st April 2013. The current RDEC rate stands at 11% of qualifying Research and Development (R&D) expenditure (previously increased from 10% on 1st April 2015).

From 1st January 2018, The RDEC rate will be increased to 12% of qualifying expenditure incurred on or after this date. Legislation will be introduced in Finance Bill 2017-18, amending section 104M of Corporation Tax Act 2009.

RDEC is available for all large companies incurring qualifying R&D expenditure. Small and Medium Sized Enterprises (SMEs) which receive certain types of funding for R&D projects are also eligible for the credit. From 1st January 2018, the increase in the rate to 12% will allow claimant companies to recover 9.72% of qualifying expenditure, based on a 19% corporation tax rate. This is an increase on the current net benefit of 8.91%.

 

Tagged R&D tax relief
Next article in series

22 Nov 2017

Autumn Budget 2017: Master trust tax registration