Corporate Company Alerts

R&D Tax Relief to be moved “above the line”


Following recent consultations and an external report the Government has decided to give Research and Development (“R&D”) in the UK a well-needed boost.

Currently companies carrying out R&D receive R&D Tax Relief in the form of a “superdeduction” against corporation tax (225% for SMEs and 130% for larger companies). The effect of this relief is only seen below the pre-tax profit line, ie “below the line” while the decision to make any R&D investment is normally taken with a view to how it will impact the pre-tax profits. The relief so far has not had as big an impact as was hoped and this now appears to be down to the fact that the relief is given “below the line”. The Government has signalled that this relief will now be given “above the line” and that the relief is given in the form of a credit that effectively reduces the actual R&D costs.

The original superdeduction did not help SMEs who were loss making. This proposal should ensure that such companies can now benefit from this relief. Likewise, the new proposal should provide multi-national companies with more clarity in making decisions as to where to site their R&D activities.

The Government will start a consultation as to the design of the credit at the time of the 2012 budget. 

For more information on this please contact Anthony Rudge on 01242 248 217 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Security Registration


Proposed New Systems For Registration of Security in England and Wales

Since March 2010 the Department for Business, Innovation and Skills (“BIS”) has been consulting on a proposed change to the systems for the registration of charges created by Companies and LLPs in England and Wales. Since then consultations have taken place and a number of follow up e-mails have been issued by BIS. The latest iteration (21 November 2011) saw the issue of replacement wording for Part 25 of the Companies Act 2006 (which sets out the registration regime for charges).

The basic proposed changes are as follows:-

  1. the requirement to register will apply to all charges created by a company except for some specific types of charge (e.g. a rent deposit deed);
  2. the need for a detailed registration form will be eliminated, instead brief particulars will only need to be given;
  3. it will be possible to submit a charge electronically and it will be possible to redact certain information in the charge document itself; and
  4. the charge document itself will be placed on the public record at Companies House. 

The proposed changes reflect criticism of the current registration system, e.g. the details registered did not properly reflect the charge created, the registration procedure was cumbersome and the difference between registration schemes for Scottish registered companies and UK registered companies.

It appears that finalised draft regulations will be completed in early 2012 with the changes unlikely to come into force until April 2013.

The current proposals will help to bring the security registration system into the 21st Century. One of the other “benefits” of the change is that it will be possible to ascertain exactly what assets are covered by a particular charge. However, lenders have always been able to request a copy of a prior charge from a borrower before make a loan so this is unlikely to provide any additional benefit.

For more information on this please contact Anthony Rudge on 01242 248 217 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .