User:Andywales1/sandbox/draft-ATL

Above the Line Research and Development Tax Relief is the colloquial name for the new UK R&D Expenditure Credit designed to incentivise investment in R&D by large companies.

“Above the Line” refers to the position of the new payable credit above the tax line in a company’s profit and loss statement. It is designed to make R&D relief more visible to those making R&D budgeting and investment decisions because in effect it will be accounted for as income. It should also provide better cash ﬂow for companies with no corporation tax liability, and thus should promote the UK as the preferred location for multi-national corporations deciding where to site their R&D operations.

See the Research & Development Expenditure Credit for more details. The new regime was formally established in the 2013 Finance Bill.