The measure
Vaccine research relief (VRR) for SMEs will be reduced from 40% to 20% from 1 April 2011 and will no longer be available to them from 1 April 2012.
Who will be affected?
This will affect SMEs who currently claim VRR on qualifying costs relating to research and development of certain vaccines or medicines. Relief will continue to be available for large companies.
When?
VRR will be reduced to 20% from 1 April 2011. SMEs will not be able to claim VRR from 1 April 2012.
Our view
A very limited number of SMEs actually claim VRR. As a result, the removal of the relief for SMEs should not significantly affect business.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.