R&D Tax Credit
For SMEs, the R&D tax credit works by allowing companies to deduct up to 150% of qualifying expenditure on R&D activities when calculating their profit for tax purposes. SMEs can, in certain circumstances, surrender this tax relief to claim payable tax credits in cash from the Inland Revenue. For larger companies, the scheme provides for a deduction of 125% of qualifying expenditure on R&D when calculating taxable profit.HM treasury
Design Council
DTI
UKTI
HM revenues and customs
BERR
PriceWaterhouseCooper
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