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Pyreos Ltd (TC4328)
The taxpayer company claimed research and development (R&D) relief for 2010 and 2012 on the basis it was small or medium-sized enterprise (SME) within the terms of CTA 2009 s 1119.
Siemens Technology Accelerator (STA) owned a substantial shareholding in the company of between 25% and 50%.
HMRC refused the R&D claim saying STA was not a venture capital business but a wholly owned subsidiary of the Siemens group meaning the taxpayer was not an independent SME which it had to be to qualify for the relief.
The taxpayer appealed.
The First-tier Tribunal noted that a shareholding by STA in excess of 25% but less than 50% would prevent the taxpayer qualifying as an SME unless STA was a venture capital company as defined in article three of Commission Recommendation (EC) no 2003/361.
The tribunal accepted STA was a venture capital investor: it was...
