Changes to R&D and Capital Relief in light of the Autumn Statement 2023
Tax partner Gemma Thake, and Strategic Corporate Finance partner Chand Chudasama discuss the most recent changes to R&D and Capital Relief in light of the Autumn Statement 2023. Their discussion details the upcoming changes, and the potential implications of these, as well as how our clients have reacted thus far.
R&D tax reliefs
This video focuses its discussion firstly on R&D tax reliefs and the new merged scheme, as well as the R&D intensity threshold and how the changes coming into effect as of April 2024 are likely to be received, especially by SMEs. We discuss the impact of the increase in HMRC investigations surrounding R&D claims and what these investigations really mean for our clients, as well as the potential implications of the R&D decreased relief rate on internationally mobile businesses.
Capital Allowances and full expensing
Our discussion then turns to Capital Allowances and full expensing, with a particular focus on the Autumn Statement headline announcement that full expensing will become permanent. Previously due to expire in March 2026, this announcement will provide certainty for a lot of businesses that can now forecast with long term predictions in mind. This, coupled with the increase in corporation tax introduced in April 2023, comes as welcome news to many businesses.
EIS and VCT sunset clause extensions
Finally, we look at the Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) relief, in particular weighing up the benefits of extending both schemes to 2035 by not allowing the Sunset Clause to come into place. This renewed focus on EIS is very welcome in providing a new focus for investors and renewed possibilities.
Our team of experts can assist directly with any of the topics discussed in this video, and provide guidance on what these changes may mean for your business. Use the form below to get in touch with our team.
We always recommend that you seek advice from a suitably qualified adviser before taking any action. The information in this article only serves as a guide and no responsibility for loss occasioned by any person acting or refraining from action as a result of this material can be accepted by the authors or the firm.
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