UK Proposes Overseas Research and Development Relief Rules

The UK proposed new tax relief restrictions Friday for contracting out research and development activities overseas.

The tax office opened a consultation supporting an ongoing legislative process to change the R&D tax relief regime in the UK by merging incentives for large and small companies and starting a new credit for small R&D-intensive companies at the same time.

• The availability of R&D reliefs for payments to contractors and externally provided workers outside the UK must meet three conditions, according to the new rules. The conditions for R&D must not be present in the UK, the conditions must be present in ...