As already announced in the 2014 Autumn Statement, companies that are Small and Medium sized Enterprises (SMEs) carrying out qualifying Research and Development can currently claim a corporation tax deduction of 225% of their qualifying spend. This relief is being increased to 230% with effect from 1 April 2015. In order to improve the cash flow of loss making SMEs the tax rules allow the company to surrender the loss attributable to the enhanced R&D spend for a tax refund. The current tax refund rate is 14.5% of the loss attributable to the enhanced expenditure. Contact us if you would like to discuss whether your company could qualify for R&D tax relief.