Creation of a 20% innovation tax credit for SMEs

The 2013 Finance Act extended the research tax credit to certain innovation expenses of SMEs as defined by EU law: design of prototypes or pilot installations of new products, and related staff and patent expenses. These expenses give rise to a 20% tax credit, up to €400,000 of expenses a year, i.e. at most €80,000 of credit. The same article abolished the higher research tax credit rates granted to companies entering the scheme.