How do you calculate fees for qualfying capital assets?
If costs qualifying for R&D relief are capitalised, we will ignore the benefit of receiving a tax deduction for the original cost of the assets in our fee calculations.
E.g. A Ltd spends £1,000 on software costs which are capitalised as intangible assets and fully qualify for SME R&D relief. None of the costs has been amortised. This reduces the taxable profits of A Ltd by £2,300 (£1,000 x 130% + £1,000). However, Claimer will calculate its fees based on a benefit of £1,300 reduction in profits only.