R&D relief

HMRC have published draft guidance on the above-the-line credit for large companies for research and development expenditure incurred on or after 1 April 2013, to run alongside the current scheme until it ends on 31 March 2016.

The credit discharges corporation tax that a profit-making company would have to pay, while allowing businesses with no corporation tax liability to receive an immediate benefit either through a cash payment or a reduction of tax or other duties due.