Pre-Budget Report 2009 Introduction Personal tax Tax rates and allowances Furnished holiday lettings Pensions and Credits State Pension Rates of tax credit National Insurance Contributions Rates and limits: 2010/11 Rates and limits: 2011/12 Employees Bankers' bonuses Electric cars and vans Cars up to 2012 Car fuel Works canteen Savings Pension contributions Capital Gains Tax Annual exemption and rate Inheritance Tax Rates and threshold Stamp Duty/Stamp Duty Land Tax Extended holiday ends Corporation Tax Rate of tax Business Tax Bank payroll tax Capital allowances Research and development Time to pay Empty property rates relief Value Added Tax Standard rate Flat rate Other Measures Equitable liability Offshore disclosure opportunity Public sector pay and pensions Tax avoidance

Research and development Companies enjoy an additional tax relief if they spend money on qualifying research and development activities. "Small and medium enterprises" (up to 500 employees, turnover up to €100m and balance sheet total up to €86m) can deduct 175% of R&D expenditure in computing their corporation tax profits, which at the main CT rate of 28% represents a subsidy of 21p for £1 of expenditure. Until now, it has been a condition that the company claiming the deduction has had to have legal ownership of any intellectual property arising from the R&D work. This condition is removed for expenditure incurred in an accounting period ending on or after 9 December 2009. This means that the benefit could be enjoyed retrospectively - it will apply to the whole of an accounting year to 31 December 2009, even though the rule change has only just been announced.