HMRC has published a consultation document on the options under consideration for a cap on the amount of payable tax credit that companies will be able to claim under the small and medium-sized enterprises research and development (R&D) tax relief scheme from April 2020.
The proposals are:
- setting a threshold for claims below which the cap would not apply;
- aggregating the PAYE liabilities of other group companies or connected parties; and
- allowing companies to carry forward unused losses for up to two years to be surrendered in exchange for a payable tax credit against future PAYE liabilities.
The measure was mooted in the 2018 budget to deter fraudulent claims.
Comments should be emailed to consultation2019.rdtaxrelief@hmrc.gov.uk by 24 May 2019.
