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I noticed two things during my revision kit questions the first one that for R&D there was 130% , in another place i saw it was only reserach and the enahanced decuction was 125% ??? can anyone tell me about it ??
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Enhanced deduction should be at 130% for large entities. Dont forget that some exam kits have mistakes. My BPP has about 5 whereby they are addressing the wrong thing and not what was requetsted in the question. Enhanced relief did not change in FA2012
Hi Rocker,
I think I can assist.
The 130% deduction refers to a large company. A small company can deduct 225%.
BUT… Remember that 100% has already been deducted in getting to the TTP (as its just a normal expense whether it qualifies or not).
Subsequently the additional deductions for a large and small company will be, 30% and 125% respectively.
Also, don’t forget that a tax credit of 11% can be claimed instead.
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