Autumn Statement 2014 Review: Business tax
Today, in his Autumn Statement, the Chancellor announced changes to Research and Development tax relief but made no changes to capital allowances.
The tax relief for Research and Development expenditure has been given a further boost. SMEs will now benefit from 230% tax relief on qualifying expenditure, with effect from 1 April 2015 (up from 225%). Companies claiming the new “above the line” relief will now obtain a tax credit of 11% (up from 10%).
HMRC will also introduce an advance assurance scheme for SMEs making their first claim.
The Chancellor had no comment to make about the Patent Box scheme. This is now expected to be phased out, but no details have been announced so far.
No changes to capital allowances have been announced. The Chancellor stressed the part that business investment has played in economic growth, but there appears to be no plans to extend the £500,000 annual investment allowance beyond 31 December 2015.
The corporation tax rate will be 20% for all companies from 1 April 2014.