ARTICLE · 30 MARCH 2007

Technology - A Budget For Technology Companies

Pinsent Masons

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In the Budget the Chancellor has announced increases in the amounts of R&D tax credits but should all technology companies welcome this year's budget or will some be disappointed?

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Lisa Parisi

In the Budget the Chancellor has announced increases in the amounts of R&D tax credits but should all technology companies welcome this year's budget or will some be disappointed?

The fact that many companies will no longer qualify as eligible investments for Enterprise Investment Scheme investors and for Venture Capital Trusts together with the increase of 3% in the small companies' rate of corporation tax could cause difficult times for growing companies in this sector.

Research and Development (R&D) Tax Relief

Size limits for companies claiming Small and Medium Enterprise (SME) relief will be increased

The limits on companies qualifying as SMEs for the purposes of R&D tax credits will be doubled so that SMEs will be companies with fewer than 500 employees which have;

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