Abolition of the IP requirements from SME R&D 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 was abolished in PBR 2009 and this change will be included in the Finance Bill to be introduced after the Summer recess.
Who will be affected?
The removal of the IP requirement means that SME companies undertaking their own R&D work are 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, are now be able to claim the Large company R&D benefit.
When?
The change is already effective for any expenditure incurred by SMEs on R&D in accounting periods ending on or after 9 December 2009.
This change has been welcomed as it simplifies the rules for SMEs and removes one of the conditions from the regime which caused most confusion and concern. It has enabled more SME companies to benefit from the R&D regimes.
