R&D - Abolition of the Intellectual Property requirements from SME regime
The measure
The requirement in the SME R&D regime for the Intellectual Property (IP) derived from the R&D expenditure to be owned either by the claimant company alone or with other persons will be abolished.
Who will be affected?
The removal of the IP requirement means that SME companies undertaking their own R&D work will be able to claim under the SME regime without considering their IP ownership. In addition those SMEs carrying out subsidised R&D, who have been prevented from making R&D claims under the large company regime by the IP requirements in the SME regime, will now be able to claim the large company R&D benefit.
When?
The change has effect for any expenditure incurred by SMEs on R&D in accounting periods ending on or after 9 December 2009.
This change is to be welcomed as it simplifies the rules for SMEs and removes one of the conditions from the regime which has caused most confusion and concern. It will enable more SME companies to benefit from the R&D regimes.
