The R&D Tax Credit – Finance Act 2022 Updates

Eoin Brennan

Eoin Brennan

Managing Director, SciMet R&D

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This article originally appeared in Issue 4 of Chartered Accountants Ireland’s tax.point magazine and is reproduced here with their kind permission  

This month, Eoin Brennan of SciMet R&D takes us through the significant changes to the R&D Tax Credit introduced by Finance Act 2022.

The Research and Development (R&D) Tax Credit is a core element in Ireland’s suite of supports for R&D companies. Finance Act 2022 (FA22) made significant changes to the tax credit. As with the introduction of payable credits (FA08) and the phasing out of the base year (FA12), FA22 shall be recognised as another major milestone in the ongoing evolution of the R&D Tax Credit in Ireland.

The new R&D Tax Credit rules are already operational. For claims made in respect of expenditure on R&D incurred in accounting periods that commenced during 2022, companies are in a unique position of being able to choose between applying pre or post FA22 rules. Each company’s position should be carefully reviewed to determine which is most advantageous. For expenditure on R&D incurred in accounting periods commencing on or after 1 January 2023, the new rules must be applied…………….