The end of the road for tax avoidance schemes

A small change has been made to an anti-avoidance provision introduced in last year’s Budget. Non-trading companies might incur expenditure, for bona-fide reasons, on Research and Development.

Research and Development allowances (RDA) might be claimed in the future by that company on such expenditure.

Anti-avoidance measures introduced in last year’s Budget would have reduced the availability of RDAs to companies acquiring target companies that had previously incurred such R&D expenditure.

The small change now being made within this year’s Budget will remove RDA’s from the so-called “anti-loss buying rules”.