What can I claim?
There are a number of tax incentives that you can benefit
from, which the Government has introduced to stimulate
investment. These are set out below.
What tax relief is available if I lend my employees a computer? Neither you nor the employee will have any tax or NICs to pay on a computer of up to £2,500 in value which you lend to an employee, even for solely private use. The lending arrangements must not be confined to directors or made on more favourable terms to directors than to other employees. What is the tax position if I provide my employees with access to the Internet at home, including via broadband?
What are the Research and Development (R&D) tax credits? R&D tax credits are a tax relief for companies which invest in R&D. There are two schemes. Small or medium sized enterprises (SMEs) can claim tax credits on qualifying R&D expenditure from 1 April 2000 and all other companies from 1 April 2002. Both schemes are only available for companies. What incentives are there to encourage others to invest in my company? Three schemes - the Enterprise Investment Scheme, Venture Capital Trust Scheme and Corporate Venturing Scheme - offer tax incentives for investment in small unquoted higher risk trading companies. Enterprise Investment Scheme encourages individuals to invest directly in ordinary shares of qualifying companies. See IR137 'The Enterprise Investment Scheme' for more information. Venture Capital Trusts are quoted companies which attract investment from individuals and then invest their funds in qualifying companies. See IR169 'Venture Capital Trusts' for more information. Corporate Venturing Scheme encourages other companies to invest directly in ordinary shares of qualifying companies and to establish corporate venturing relationships with them. A leaflet on the new Corporate Venturing Scheme will be issued shortly. In the meantime, information about this Scheme can be obtained from the Corporate Venturing Unit, Telephone 020 8438 4485. What is the tax treatment of selling domain names? Normally, when a business or an individual sells a domain name, any gain on disposal would be taxed under the capital gains rules as a gain on the disposal of an asset. Where a business or individual trades in domain names for profit, the domain names would form trading stock, and sale proceeds would be treated as trading income for tax purposes. On 23 June 2000, the Inland Revenue published a technical note on the reform of the taxation of intellectual property, goodwill and other intangible assets. Any decisions that follow from consideration of the issues in the technical note might affect the taxation of gains on the disposal of domain names. |
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