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Osborne confirms 200% R&D tax credits rise

Wednesday, 23rd March 2011 14:19 GMT By Johnny Cullen

UK chancellor George Osborne has confirmed in today’s budget that R&D tax credits are to rise by 200 percent.

The increase will take affect from next month, with it increasing to 225 percent in 2012.

The raise is a 35 percent increase, is in line with recommendations made by development organisation TIGA and is backed by Labour.

Osborne also confirmed that plans are being determined to improve the intellectual property regime in both the digital and creative industries. More information is to come.

However, the Chancellor did not announce any plans to reintroduce games tax relief, something Labour predecessor Alistair Darling confirmed in his last Budget in 2010.

Osborne killed off the relief in his emergency budget last summer when the Tory-Lib Dem coalition came to power.

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3 Comments

  1. Syrok

    Sounds good, but what are we supposed to take away from this story? What implication will this have for companies?

    #1 4 years ago
  2. Zarckan

    This will have a massive impact on us, in the positive. As software creation is based almost entirely on an element of R&D we are able to put in R&D claims for every year of development.

    E.G. If we spent £1m on development in a single year, we are currently able to claim back 60% as R&D costs. But only being able to claim back 20% of that amount as hard cash, or offset it against FUTURE corporation tax fees.

    We are now, from what I can fathom, without reading the fine print, claim back 40% as hard cash.

    = WIN!

    So that could be up to £350k

    #2 4 years ago
  3. Syrok

    Ah, thanks Zarckan.

    #3 4 years ago

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