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R&D Tax Credits interraction with charity donation

I realise you cant use charitable donations to create a loss for Corporation tax but what if you have a profit before R&D credits, which includes charitable donations, but after you apply the R&D expenditure, you get a loss that’s surrendered for the credits? Do you have to exclude the charitable donations?

 

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By AANM
18th Jun 2018 15:18

.

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By AANM
18th Jun 2018 15:15

Sorry that came out all wrong!!

I meant you cant use charitable donations to create a loss for corporation tax

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By AANM
18th Jun 2018 15:15

Sorry that came out all wrong!!

I meant you cant use charitable donations to create a loss for corporation tax

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By AANM
18th Jun 2018 15:15

Sorry that came out all wrong!!

I meant you cant use charitable donations to create a loss for corporation tax

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18th Jun 2018 15:56

Before you solve this problem, I'd see someone about that terrible stutter you've got.

As to the question, you exclude the charitable donations.

It is only the trade loss that can be surrendered.

You'll be adding back the charitable donations in the trade computation, and allowing these as a qualifying charitable donation instead. Chances are you'll not receive any relief for these unless part of a group.

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to Lone_Wolf
18th Jun 2018 16:08

Lone_Wolf wrote:

It is only the trade loss that can be surrendered.

Minor correction. It's only the trade loss to the extent that it relates to the R&D expenditure that can be surrendered. If R&D increases a loss, then not the whole loss will qualify.

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to SteLacca
18th Jun 2018 16:48

Agree. I should have been clearer in my answer.

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By AANM
18th Jun 2018 16:07

Thank you!
Oh tell me about the stutter! I shouldn't try doing these things on mobile phones :-/

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