Mc Intosh Fleming Solicitors are breaking the mould in the provision of legal services by an entrenched oligopoly of law firms who do not compete with each other on price and provide no better service than we do for their higher prices. We provide a real and refreshing low fixed price alternative, and a high quality service provided only by solicitors with 20 years experience rather than cheap but inexperienced or less well trained legal executives, paralegals or newly qualified solicitors.
The R&D expenditure can be deducted as a pre-trading expense. Where a company is entitled to the R&D tax relief, but the company is not carrying on a trade against which it can offset that expenditure, the company is entitled to relief, if the expenditure would have been allowable had the company, at that time been carrying on a trade consisting of the activities in respect of which the expenditure was incurred.
Where a company is treated as incurring a loss through the operation of the R&D tax relief relating to pre-trading expenditure that trading loss may not be set off against profits of the preceding accounting period of the company under the Corporation Tax Act 2010.
The funded R&D must be relevant R&D in respect of the company, and is not contracted out to the qualifying body, individual or partnership by another person.
The tax relief is subject to limitations similar to those applicable to the R&D relief generally provided under Part 13 Chapter 2 of the Corporation Tax Act 2009 (relief for SMEs), such as in respect of artificially inflated claims, and refunds of contributions to independent R&D.
A detailed examination of this regime, which has since been rewritten as Part 8 of the Corporation Tax Act 2009, is beyond the scope of this work, and dedicated commentary should be consulted for more details. The regime is the culmination of a consultative process which started in 1998.
For accounting purposes, goodwill represents the difference between the price at which a business is sold and the total value of the separate assets of the business after deducting the value of the liabilities assumed.
For the purposes of regime, the amounts to be taken into account in computing the company’s corporation tax liability are referred to as ‘credits’ and ‘debits’.
In the case of a trade the deductible debits and taxable credits which are brought into account under the Corporation Tax Act 2009 Part 8 regime are regarded as receipts and expenses of the trade.
If a loss is recognised in the company’s profit and loss account, the effect of which is to reverse a gain recognised in a previous accounting period in respect of which a credit was brought into account.