United Kingdom


  • Service: Tax, Budget 2012
  • Type: Press release
  • Date: 21/03/2012

Budget 2012: UK firmly open for R&D business say KPMG 

Wednesday 21 March 2012


The Chancellor has confirmed his intention, as announced in the Autumn Statement, to introduce an Above the Line (“ATL”) Credit for qualifying Research & Development expenditure for large companies. 


In addition, it has been confirmed by that the rate of the ATL credit will be at least 9.1% before tax, and that loss making companies will be able to claim a payable credit.


David Woodward, head of the R&D Tax group at KPMG said: 


“The ATL R&D credit turns a tax credit into income for the company and makes the benefit more visible to decision makers.  This has been lobbied for by UK business and is a really positive move for UK competiveness.  The ATC will hopefully result in a migration of R&D expenditure to the UK, with the consequential impact on jobs and wealth creation.


“Whilst the finite detail of the regime is yet to be decided, the proposed minimum rate of 9.1%, which is broadly equal to the existing tax benefit, means the benefit will not be reduced as part of the change, with loss making companies able to receive a payable credit in cash.


“At a time when some countries are looking to reduce the benefit of their R&D incentive regimes, this demonstrates that the UK is firmly open to the R&D intensive companies!”     





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For further information please contact:

Judith Dow, KPMG Corporate Communications

Tel:  0207 694 8584 Mobile: 07786 197 718 Email: judith.dow@kpmg.co.uk


KPMG Press Office

Tel:  +44 (0) 207 694 8773




About KPMG:

KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 11,000 partners and staff.  The UK firm recorded a turnover of £1.7 billion in the year ended September 2011. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 152 countries and have 145,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  KPMG International provides no client services.