UK:
Section 174 Expenditures
28 February 2023
Alvarez & Marsal
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As a result of the Tax Cuts and Jobs Act (TCJA), beginning with
tax years after December 31, 2021, Section 174 requires taxpayers
to capitalize and amortize research and experimental expenditures.
The TCJA also expanded the scope of research expenditures subject
to section 174 to include software development costs, which means
businesses no longer have the option to immediately expense those
costs or use alternative amortization rules.
Reach out to our A&M Taxand Section 174 experts today to
schedule an initial assessment where we discuss how this will
impact your business.
SECTION 174 EXPENDITURES
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.
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