R&D tax relief's on Computers

R&D Tax credit

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We are claiming R&D tax relief for a company that has a policy to expense out all expenses below £1200. They have bought many computers within that value. It is a software development company so the computers are used for R&D and by R&D staff. Usually we would disallow capital expenditure for R&D. However, in this case they had this policy and all the computers and laptops under that value have gone through Profit and Loss as IT consumables. Should R&D be allowed?

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By Dib
28th Sep 2016 13:19

No because the capital equipment:
a should be capitalised and capital allowances claimed
b items are not consumed in the R&D

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