- R&D expenditure credit: 11%
- SME relief: 230%
- repayment credit rate stays at 14.5%
HMRC are planning to provide (on request!) advance assurances (valid for three years) on whether R&D activities qualifies, for smaller companies, giving certainty for those new to the regime - it's just a pity we have to wait until Autumn 2015 for the assurances to be available. The planned new guidance for smaller companies also welcome, as is the plan for publicity campaign to raise awareness of the relief.
Film relief: extended to be 25% of surrendered losses for all, removing the distinction between limited budget films and others (subject to State aid clearance). This simplifies the relief and makes it easier for films with budgets on the borderline of £20m to determine the amount of relief available to them; it effectively extends the FA2014 change which softened the cliff edge element of the relief for large budget films.
This could re-named HMRC’s belated revenge on the Howard estate: assets which have been lent to a business will not be able to be treated as plant and therefore a wasting asset unless the vendor has used it in their own business. This follows, unsurprisingly, from the case brought against HMRC by the estate of the late Lord Howard, which succeeded in having a 200 year old painting, previously displayed at Castle Howard, treated as a wasting asset and exempt from CGT on sale.