CIRD98400 - R&D tax relief: legislative structure and time line: FA04 changes
New definition of R&D
As mentioned at CIRD98050 the new definition came into force for accounting periods ending on or after 1 April 2004. While it is intended to make the meaning of R&D clearer it is not considered to materially change the definition of R&D; only to express it more simply and in a more structured way.
Changes to consumable stores and introduction of software
These provisions come into force for expenditure on or after 1 April 2004.
When R&D revenue expenditure can be deducted
FA04/S53 introduced a change to the rules for when expenditure can be eligible for the R&D tax relief, the change is given effect for expenditure incurred in accounting periods beginning on or after 1 January 2005 by a statutory instrument (SI2004/3268).
The effects are explained more fully at CIRD81450. The reason for this change was to prevent the adoption of IAS from delaying the availability of R&D tax relief (CIRD98500). The change applies whether the revenue expenditure is recognised as an intangible asset under IAS or under UK GAAP.