Policy paper
Preventing abuse of the research and development tax relief for small and medium-sized enterprises: Budget 2018 brief
The Budget has announced that the amount a loss-making company can receive in R&D tax credits will be capped at three times its total Pay as you Earn and National Insurance contributions liability.
Documents
Details
HMRC has identified and prevented £300 million of fraud linked to this relief and this change will help to address similar abuses in future.
This document further explains the rationale for the change and gives background detail on the measure.
Further information on the wider avoidance, evasion and unfair outcomes package can be found in a separate fact sheet.