Research and Development Expenditure Credit (RDEC): 2017 Autumn Statement Rate Change

In this short video, we consider the changes announced in the November 2017 Autumn Statement to the Large Company Research and Development Expenditure Credit ('RDEC') and work through an example:

Our analysis shows that the impact of the increase in RDEC rate from 11% to 12% is an increase from 8.8% to 9.7% in tax savings generated by the RDEC claim. This is good news for large companies and for those SMEs with grant or subsidised expenditure.

It is just a little disappointing that there was no increase in rates for the SME R&D tax incentive, especially given the decrease in corporation tax rates with effect from 1 April 2017.