Corporation Tax and Allowances
With the main corporation tax rate and marginal relief now embedded, planning attention turns to the timing of profits and the treatment of capital expenditure. Full expensing for qualifying plant and machinery remains a central lever, and the interaction with the annual investment allowance shapes the after-tax cost of investment decisions.
R&D and Innovation Relief
The merged R&D expenditure credit scheme has changed how claims are calculated and evidenced, with enhanced support routes for R&D-intensive companies. HMRC scrutiny of claims has risen sharply: contemporaneous technical and financial records are now essential to defend a claim, not optional documentation.
The Compliance Direction
The consistent theme across recent Budgets is investment in HMRC enforcement and data. Businesses should expect more enquiries, more information requests and a higher evidential bar. A forward review of corporation tax, capital allowances and R&D positions is cheaper than a contested enquiry after filing.
Evidence Pack
- 01 Capital-allowances review: full expensing, AIA and timing of qualifying spend.
- 02 R&D claim methodology with contemporaneous technical and cost evidence.
- 03 Corporation-tax forecast modelling rate, marginal relief and group position.
- 04 HMRC enquiry-readiness file for higher-risk positions.