New Style Research

Allowances for capital spending on scientific research were introduced in 1945 and since 1962 businesses have been able to write off immediately capital outlay on such research including expenditure on facilities for the carrying out of scientific research. However as with other things the Government wished to 'modernise' these allowances so that it would be clearer to businesses as to what was and was not allowable. The modernisation was also linked to the aim of bringing the appeals procedure under the jurisdiction of the Revenue rather than the Department of Trade and Industry which previously determined appeals relating to scientific research.

To this end the Revenue issued a consultation paper in January 1999 and this was followed by an announcement of the proposed changes in the pre Budget report for 1999. Finally the changes were confirmed in the 2000 Budget ...