Finance Act 2008

Rates of research and development relief: SMEs

1(1)Part 2 of Schedule 20 to FA 2000 (giving effect to R&D tax relief) is amended as follows.

(2)In each of the following provisions, for “150%” substitute “175%”—

(a)paragraph 13 (deduction in computing profits of trade),

(b)paragraph 14(2) (alternative treatment of pre-trading expenditure), and

(c)paragraph 15(3)(b) (entitlement to R&D tax credit).

(3)In paragraph 16(1)(a) (amount of R&D tax credit), for “16%” substitute “14%”.

(4)The amendments made by this paragraph have effect in relation to expenditure incurred on or after such day as the Treasury may by order appoint.

(5)The Treasury may appoint a day before the day on which this Act is passed, but not one before 1 April 2008.